Bringing you live news and features since 2006 

VanEck launches ESG ETF on the new economy in China

RELATED TOPICS​

Asset manager VanEck has listed an ETF it describes as Europe’s first ETF designed to provide access to Chinese companies from the new economy, taking ESG criteria into account. 

The VanEck Vectors New China ESG UCITS ETF is listed on London Stock Exchange and Xetra Deutsche Börse and the ETF is also available at CEINEX, a platform of Deutsche Börse for China-related financial products in Europe.

The firm writes that China is one of the world’s fastest growing major economies and has a rapidly growing middle class. Currently, it includes around 400 million people, which is already larger than the total population of the United States. With growth, GDP per capita is also rising significantly, which is bringing about a change in the consumption patterns of China’s middle class.

“It’s a new kind of consumer that is behind China’s amazing growth,” says Martijn Rozemuller, CEO at VanEck Europe. “They spend their money on innovative technologies, healthcare services, pharmaceuticals, consumer and luxury goods. China’s economy continues to develop and companies in the country are adapting to the new consumer realities. Chinese companies that are part of the new economy are likely to outpace the country’s overall growth.”

With the new VanEck Vectors New China ESG UCITS ETF, investors can invest in a targeted selection of the strongest companies in this dynamic new economy, filtered according to ESG criteria, and profit from the comprehensive transformation of the Chinese economy. But increased spending on consumer and consumer staples is not just impacting manufacturers. 

“Today, e-commerce platforms also play a very big role in China,” Rozemuller says. “People in China are fundamentally very digital-savvy; globally, China’s consumers rank first in online spending. China’s online retail market is larger than the next largest 10 markets combined.  At the same time, China’s population is aging much faster than that of many other countries, according to the World Health Organization; by 2035, one in five Chinese could be 65 and older. As a result, overall spending on healthcare in China, for example on pharmaceuticals or telemedicine services, is growing – companies in the healthcare sector will benefit from this.”

The new ETF tracks the MarketGrader New China ESG Index, which includes only companies from four sectors: non-consumer staples, consumer staples, healthcare and technology. The index selects the 100 companies with the most solid fundamentals and continuously evaluates them based on four factors: growth, valuation, profitability and cash flow. 

In addition, companies must exceed the regional median ESG score, which is regularly determined by OWL Analytics using the OWL Analytics Consensus ESG Score. It covers over 25,000 companies worldwide and publishes monthly metrics aggregated from hundreds of independent ESG data sources. In addition to ratings and rankings of all companies in its covered universe, OWL ESG quantifies corporate behavior against thirty core metrics, including 12 KPIs, related to ESG factors. The VanEck Vectors New China ESG UCITS ETF is accumulating and has a total expense ratio (TER) of 0.60 per cent.
 

Latest News

BlackRock writes that May marked the highest inflow month of the year for both rates and high yield (HY) ETPs,..
SIX reported a combined 12.3 per cent trading turnover increase in CHF for its two exchanges in Switzerland and Spain..
EFAMA’s March figures reveal that UCITS and AIFs recorded net inflows of EUR24 billion, up from EUR21 billion in February...
VanEck has announced that the VanEck Semiconductor UCITS ETF has reached over USD2 billion in assets under management (AUM) after..

Related Articles

Darren Johnson, Komainu
Custody specialist, Komainu, was launched in 2018 as a joint venture between Nomura, digital-asset investment manager, CoinShares and blockchain business,...
Stuart Chaussee
In January this year, global data and business intelligence platform, Statista reported that there are now more than 8000 ETFs...
Ethereum coin
Last week saw Australia launch spot bitcoin ETFs, with Matteo Greco, Research Analyst at Fineqia International, writing that Monochrome Asset...
Timothy Rotolo, Range Funds
In 2023, Timothy Rotolo launched his business, Range Fund Holdings, the parent company for Range Indices and Range ETFs, followed...
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