VanEck has announced it is lowering the expense ratio for the VanEck Vectors ChinaAMC CSI 300 ETF (PEK) and the VanEck Vectors ChinaAMC SME-ChiNext ETF (CNXT).
Effective on 10 January 2019, the expense cap for PEK will be reduced from 0.72 per cent to 0.60 per cent, and the expense cap for CNXT will be reduced from 0.78 per cent to 0.65 per cent. PEK seeks to track the CSI 300 Index, which is comprised of the largest and most liquid stocks in the Chinese A-share market. CNXT seeks to track the SME-ChiNext 100 Index, which is comprised of the 100 largest and most liquid onshore China A-share stocks listed on the Small and Medium Enterprise (SME) Board and the ChiNext Board of the Shenzhen Stock Exchange.
VanEck regularly evaluates fund expenses to identify opportunities to lower shareholder costs. These fee reductions will allow investors to benefit from the opportunities and diversification potential offered by China’s vast onshore equity market, at a lower cost.
“China’s contribution to global gross domestic product is now comparable to the US, but may be underrepresented in many investors’ portfolios. We have seen increasing foreign investment into China as policymakers have gradually opened up the onshore market in recent years. We believe that attractive valuations and stimulus-driven growth should provide opportunities for investors going forward,” says Ed Lopez, Head of ETF Product at VanEck.
In addition to PEK and CNXT, VanEck also provides exposure to Renminbi-denominated bonds through its VanEck Vectors ® ChinaAMC Bond ETF (CBON).