WisdomTree has reduced the fee charged on its European-listed ICBCCS WisdomTree S&P China 500 UCITS ETF (CHIN LN).

WisdomTree has reduced the fee on its ICBCCS-managed S&P China 500 ETF. (file image)

The total expense ratio has been cut by 20 basis points, from 75bps to 55bps, effective from the start of the year.

The ETF, which is physically replicated and managed by Hong Kong-based ICBC Credit Suisse Asset Management, tracks the S&P China 500 Index, offering broad coverage of all China equity share classes – including A-Shares and offshore listings.

It remains Europe’s only ETF to provide investors with non-constrained market-cap-weighted all-China equity exposure.

The index uses a rules-based process to select 500 of the largest and most liquid Chinese companies while approximating the sector composition of the broader Chinese equity market.

All Chinese share classes are eligible for inclusion, subject to meeting minimum size and liquidity requirements.

The methodology allows the index to be more reflective of the evolution of the Chinese economy than other China indices, which are limited in the share classes that they include.

The index is weighted by float-adjusted market cap and is rebalanced semi-annually in June and December.

The fund achieved its three-year track record in July 2019, with an annualised total return of 10.1%, net of fees since launch.

Chris Gannatti, Head of Research, Europe, WisdomTree, said, “This TER reduction offers an attractive entry point for investors interested in the long-term growth prospects of the Chinese economy. CHIN provides access to all Chinese equity share classes, including A-Shares and offshore shares, and better reflects the true nature of China’s total equity market compared to other China indices.

“As the US-China trade tensions have eased a bit, if economic data continues to stabilise and expectations of policy remain broadly accommodative, China could be a compelling investment opportunity.”

The houses approximately $57.5m in assets and is available to trade in US dollars, renminbi, sterling, and euros. It maintains listings on London Stock Exchange, Xetra, and Borsa Italiana.

LSE                    USD        CHIN LN
LSE                    CNY        CHIC LN
LSE                    GBx         CHIP LN
Börse Xetra       EUR         ICW5 GY
Borsa Italiana    EUR         CHIN IM