Xtrackers Harvest CSI 500 China-A Shares Small Cap ETF (ASHS)

Overview

The Xtrackers Harvest CSI 500 China-A Shares Small Cap ETF (ASHS) provides exposure to small-cap companies within the CSI 500 Index, focusing on China A-shares. It aims to capture the growth potential of emerging small businesses in mainland China.

Reputation and Reliability

DWS is a reputable global asset manager with a long track record in providing investment solutions. The firm is known for its expertise in managing international and emerging market portfolios.

Management Expertise

DWS has a team of experienced portfolio managers and analysts who specialize in Chinese equity markets. They utilize a disciplined investment process to track the CSI 500 Index effectively.

Goal

To provide investment results that correspond generally to the performance, before fees and expenses, of the CSI 500 Index.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, seeking to replicate the performance of the CSI 500 Index. It invests in a portfolio of China A-shares that are components of the index.

Composition The ETF primarily holds stocks of small-cap companies listed on the Shanghai and Shenzhen Stock Exchanges. The composition reflects the weighting of these stocks in the CSI 500 Index.

Market Share: ASHS's market share within the China A-shares small-cap ETF segment is relatively moderate.

Total Net Assets (AUM): 67250000

Key Competitors

• KraneShares Bosera MSCI China A Share ETF (KBA)
• iShares MSCI China A ETF (CNYA)

Competitive Landscape

The China A-shares ETF market is moderately competitive. ASHS offers a focused approach on small-cap companies within the CSI 500, providing a niche exposure. Competitors like KBA and CNYA offer broader market coverage, potentially leading to different risk-return profiles. ASHS's advantage lies in its specific small-cap focus, while its disadvantage could be lower diversification compared to broader indices.

Historical Performance: Historical performance data should be sourced from financial websites. (e.g., 1-year, 3-year, 5-year returns).

Benchmark Comparison: The ETF's performance should be compared to the CSI 500 Index to assess tracking error.

Expense Ratio: 0.65

Average Trading Volume

The average trading volume for ASHS is moderate, which may impact execution costs for larger trades.

Bid-Ask Spread

The bid-ask spread for ASHS can vary depending on market conditions and trading volume, which should be monitored for cost efficiency.

Market Environment Factors

Economic growth in China, government policies, regulatory changes, and global market conditions significantly impact the performance of ASHS.

Growth Trajectory

Growth trends depend on the performance of the Chinese small-cap equity market. Changes in the CSI 500 index composition and adjustments in investment strategy, if any, also play a role.

Competitive Edge

ASHS's competitive edge lies in its specific focus on small-cap China A-shares within the CSI 500 Index, offering a targeted exposure. The ETF's strategy can be attractive to investors seeking to capitalize on the growth potential of smaller Chinese companies. The ETF's management by DWS, a reputable asset manager, also adds to its credibility. However, its more concentrated focus makes it less diversified and potentially more volatile than broader China ETFs.

Volatility

Historical volatility should be assessed using standard deviation or beta to understand the ETF's price fluctuations.

Market Risk

ASHS is subject to market risk related to Chinese equities, including regulatory risks, economic fluctuations, and geopolitical factors specific to China.

Ideal Investor Profile

The ideal investor for ASHS is someone with a high risk tolerance, looking for targeted exposure to Chinese small-cap equities, and willing to accept the volatility associated with emerging markets.

Market Risk

ASHS is more suitable for investors with a long-term investment horizon and a higher risk appetite. It may be used as a tactical allocation within a diversified portfolio.

The Xtrackers Harvest CSI 500 China-A Shares Small Cap ETF (ASHS) offers targeted exposure to small-cap China A-shares, appealing to investors seeking growth from emerging Chinese businesses. Managed by DWS, it tracks the CSI 500 Index, focusing on mainland China's smaller listed companies. While it provides niche market access, investors should consider its volatility and concentration risk. Ideal investors have high risk tolerance and a long-term investment horizon to fully leverage this ETF's potential.

Data Sources:

• DWS Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

This analysis is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Market conditions may change and impact the ETF's performance.