Invesco launched a regular Chinese vanilla stock swap-backed ETF that invests in large and medium-sized Chinese companies. The funds are listed on the London Stock Exchange, the German Stock Exchange, the Italian Stock Exchange and the Swiss SIX Stock Exchange.
• Invesco S&P 500 China A 300 Swap UCITS ETF (C300)
• Invesco S&P China A MidCap 500 Swap UCITS ETF (C500)
Unusually, funds track indexes from S&P Global. They do not use official Chinese stock market metrics from CSI, the main index provider in China.
The C300 is followed by the S&P Index, which includes 300 of the largest A-shares on the Shanghai and Shenzhen stock exchanges. The C500 tracks the second largest 500 Class A shares on the Shanghai and Shenzhen Stock Exchanges.
The index excludes companies on the US Office of Foreign Assets Control’s list of sanctions. Under Biden’s rule, the United States has expanded the list of companies subject to sanctions, which are still included in the official CSI 300 index.
The funds use swaps from investment banks in London to track their indexes. They don’t buy A shares directly. Investment banks offer this service for a fee, however, we have a hard time finding it in Invesco’s product publications.
The declared administrative fee is 0.35%.
We ask ourselves the question of why these ETFs are synthetic. There are a lot of benefits to owning US stocks in European ETFs, but what are the benefits of this copying method for Chinese stocks? We posed the question to Invesco in Sweden, and hope to get an answer.
Trade these exchange-traded funds
The funds are listed on the London Stock Exchange, the German Stock Exchange, the Italian Stock Exchange and the Swiss SIX Stock Exchange.
This means that it is possible to trade shares in Chinese swap-backed ETFs through most Swedish banks and online brokers, for example DejeroAnd nordnet And keep it up.