Bringing you live news and features since 2006 

China Flag

Van Eck to launch first China bond-focused ETF in the US

RELATED TOPICS​

Van Eck Global has launched the Market Vectors ChinaAMC China Bond ETF (CBON), a US‐listed exchange-traded fund designed to provide investors with direct access to China’s onshore bond market.

Van Eck launched the first ETF providing exposure to A-shares in the US (Market Vectors ChinaAMC A-Share ETF) on 13 October 2010, and this summer it launched a Chinese equity ETF (Market Vectors ChinaAMC SME-ChiNext ETF), primarily focused on innovative, non government-owned companies.
 
CBON seeks to invest in all major segments of the Chinese fixed income markets, including sovereigns, policy banks, and high rated corporate bonds.
 
“China’s domestic bond market is expanding and evolving at the same time. While the full liberalisation of the markets is likely to take a long time, movement towards greater access for borrowers and lenders, and a higher degree of market oriented financings such as bond issuance have already greatly broadened the opportunity set for local investors,” says Fran Rodilosso, senior investment officer for Market Vectors ETFs.
 
CBON is the newest addition to Van Eck’s family of emerging markets bond ETFs which include the largest local-currency bond ETF in the US, Market Vectors Emerging Markets Local Currency ETF (NYSE Arca: EMLC), and the largest emerging markets corporate bond ETF in the US, Market Vectors Emerging Markets High Yield Bond ETF (NYSE Arca: HYEM), by assets under management as of October 31, 2014.
 
“China is currently the largest emerging markets bond market, yet to this point investors outside of mainland China have been mostly excluded from direct ownership of locally issued bonds,” says Rodilosso. “China’s onshore bond market has had historically low correlation to core asset classes and has delivered attractive yields in comparison to developed bond markets in recent years.”
 
CBON seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the ChinaBond China High Quality Bond Index, ticker: CDHATRID. The Index is comprised of fixed-rate, Renminbi (RMB)-denominated bonds issued in the People’s Republic of China by Chinese credit, governmental and quasi-governmental (eg, policy banks) issuers. As of 10 November, the yield to maturity for the index was 4.1 per cent. 

Latest News

European ETFs raised USD47.8 billion in Q1, a 15 per cent increase compared to the same period in 2023, according..
LSEG Lipper’s March report finds that globally equity ETFs (+EUR113.2 billion) enjoyed the highest estimated net inflows for the month,..
Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by