Global X MSCI China Energy ETF (CHIE)

Overview

The fund discussed is an investment vehicle that primarily focuses on the energy sector within the Chinese market. It strategically allocates at least 80% of its total assets towards securities that are listed on the underlying index, which is the MSCI China Investable Market Index. Additionally, it permits investments in American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) which are based on the securities found within the underlying index. This approach allows the fund to track the performance of energy sector companies that are part of the parent index. It's important to note that this fund adopts a non-diversified investment strategy, meaning it does not spread its investments across a wide range of sectors or assets to mitigate risks.

Products and Services

• Investment in Securities of the Underlying Index

  The fund commits at least 80% of its total assets to the securities of the MSCI China Investable Market Index that fall within the energy sector. This focused investment strategy aims to closely replicate the performance of the underlying index by investing in the shares of companies engaged in the energy industry within China.

• Investment in ADRs and GDRs

  In addition to direct investments in the securities of the underlying index, the fund also invests in American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs). These instruments are based on the securities of the companies within the underlying index. ADRs and GDRs allow the fund to have a stake in foreign companies' shares, offering a broader exposure to the energy sector across different markets while remaining focused on the Chinese energy sector.