World stock market cap & China ETFs

I’m more feeling like buying now and selling when they will get integrated. Otherwise, we might lose a bull after current bear ends.

So what’s wrong with the Vanguard Total China from Hong Kong, that you provided (9169 HK)? It seems the most complete of all. And you can buy it in USD. Is it available over IB? Wonder what are the transaction fees on the HKEX.

One minus is that you overweight China large caps if you’re already invested in EM or global index.

As @1000000CHF said, you already have most of it, along with 5% of A-shares if you track EM with FTSE or MSCI.

I checked on CT and it is 0.25% commission, minimum 196 HKD (~25 CHF) to purchase. Not sure about liquidity as the market was closed when I checked.
Another problem could be that it’s also not listed on ICTAX, whereas the Xtrackers Harvest CSI300 is.

For IB it’s 0.080% (broker fee) + 0.005% trade value + HKD 0.50 per trade (exchange fees).

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So I just pulled the trigger and got me a batch of the Ishares MSCI China A UCITS ETF after today’s discounts. We’ll see how that goes.

I tired to buy (for test) Vanguard Total China at HKEX, but it seems they limited the buying:

Maybe I need to try to buy in HKD?

How about the HKD denominated one? The USD one also seems to be blocked on CT (zero liquidity)

I haven’t tried - I’m at work already. :stuck_out_tongue: I’ll give it a shot during the lunch break or tomorrow morning (unfortunately after work HKEX is closed). :slight_smile:

I checked the volumes on the stock exchange website:

So yeah, that might be the reason why you couldn’t buy.

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Guys, In my last trip to Singapore I had 12 hours to write and watch documentaries.
Have a look at “The China hustle” (Trailer) This is how all of us are already invested into China companies without even knowing about it throughreverse mergers.

If you have the chance have a look at it and let me know what you think.

cheers!

Trump just tweeted

Just had a long and very good conversation with President Xi Jinping of China. We talked about many subjects, with a heavy emphasis on Trade. Those discussions are moving along nicely with meetings being scheduled at the G-20 in Argentina. Also had good discussion on North Korea!

— Donald J. Trump (@realDonaldTrump) November 1, 2018

AMEX:ASHR (Xtrackers Harvest CSI 300 ETF) already 3.87% up

Any success / experience buying vanguard China Total in HKD?

Apologies for re-kindling old thread. I am going for VT / VTI+VEA+VWO and want to overweight China (10-15% of entire portfolio) and looking for cheapest and most liquid way to get broad exposure to especially China A-shares.

VWO is benchmarked against FTSE Emerging Markets All Cap China A Inclusion Index of which ~34% is in 2271 China large+mid+small stocks (ref: page 4 of this doc). But I don’t know how to find what is the % split across small/mid/large China stocks. I could just overweight VWO in my overall portfolio (20-30%) but that would overweight many small EMs. Further, my family already has significant India exposure through mutual funds in India.

Then make it easy and buy ASHR (tracks CSI 300, US-listed) or CNYA (tracks MSCI China A inclusion, IE-listed).

You can get furhter exposure to Chinese “exotica” with ASHS (tracks CSI 500, China A Small caps) and CNXT (Tracks Chinext index, very volatile!).

Vanguard Total China is mostly Large Caps so it’s hardly a diversification from what you will get in VWO at a much lower TER.

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Thanks @glina ASHR and CNYA indeed look interesting. From what I understand CNYA is accumulating and is already in ICTAX, so I’ll pay the tax on virtual dividends. ASHR is US-listed so distributing like VWO etc.

CNYA tracks China A Inclusion Index (260 A shares) and not yet China A Index (427 A shares)

" The MSCI China A Inclusion Index is designed to track the progressive partial inclusion of A shares in the MSCI Emerging Markets Index over time. It currently includes large cap A Shares and in the event of further inclusion of A shares to the regional index, the newly eligible A shares will be added, reflecting those A shares compatible with Stock Connect and based on the offshore RMB exchange rate. " (ref)

KraneShares KBA has already moved to MSCI China A Index, though its TER is double of CNYA at 0.8

As for Chinese “exotica”: 1 bite at a time :slight_smile:

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As as owned the VFEM ETF (EM Vanguard Ireland based), which has only started to include A shares recently and gradually, I have decided to buy A shares ETFs.
In this specific market, the liquidity of the ETF is more important than the TER.The difference betwen the indexes is really small (CSI 300, A shares, A shares international)
I would recommend

  • ASHR and KBA
  • iShares MSCI China A UCITS ETF
  • HSBC MSCI China A Inclusion UCITS ETF

I own ASHR and Lyxor Hwabao WP MSCI China A (DR) UCITS ETF Acc. This last one is very illiquid. I regret to have bought it

There is an another ETF witch tracks China : CN. This ETF includes everything China has to offer. Here is the qoute from the DWS webseite:

The Xtrackers MSCI All China Equity ETF (CN) seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI China All Shares Index. The MSCI China All Shares Index captures large and mid-cap representation across China A-shares, B-shares, H-shares, Red-chips, and P-chips. The index aims to reflect the opportunity set of China share classes listed in Hong Kong, Shanghai and Shenzhen. It is based on the concept of the integrated MSCI China equity universe with China A-shares included.

The ETF includes other ETFs (ASHX, ASHS) and has a TER of 0.5

Maybe this one is a good alternative for a very broadly diversified China exposure.

I have only the ASHR-ETF. but since the TER is 0.66 i’m consider to switch to CN

To me it means that you pay 2 layers of expense ratio for ~40% portion in ASHX+ASHS.
Correct me if you think this is wrong.

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Bit the bullet and bought KBA.

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honestly I don’t now. I think the TER displays the cost including the other two ETFs. I tried to find some Information on the cost of holding two or more layers of ETF structure but did’t find a good answer.

Maybe someone here has more knowledge of the TER calculation of this sort of “ETF holds other ETFs” thing