A50 China Index ETF: A Comprehensive Guide

The A50 China Index ETF is a popular investment option for those looking to tap into China's growing economy. This ETF tracks the CSI 300 Index, which comprises the 50 largest and most liquid stocks in the Shanghai and Shenzhen stock exchanges.

The A50 China Index ETF offers a convenient way to invest in China's stock market, with a low minimum investment requirement and a wide range of brokerage options. This makes it an attractive option for individual investors.

The fund is actively managed, with a team of experienced investment professionals who closely monitor the market and make adjustments as needed. This ensures that the fund remains aligned with the CSI 300 Index.

Benchmark Exposure is key when investing in the A50 China Index ETF. It provides access to a diversified portfolio of the 50 largest companies in the mainland Chinese market.

These 50 companies make up the FTSE China A50 Index, which is Australia's only dedicated China A-shares market benchmark exposure. This gives you a broad representation of the Chinese market.

The MSCI China A 50 Connect Index is another option, designed to meet the requirements of investors in China's mainland A-share markets. It offers high correlation to broad China A-share benchmarks, making it a reliable choice.

One of the benefits of the MSCI China A 50 Connect Index is its balanced sector weighting methodology, which focuses on China's largest and most liquid securities. This can result in greater liquidity and investability.

In addition, the MSCI China A 50 Connect Index may offer a reduction in tracking error and bid-ask spreads. This is due to market makers being able to directly hedge exposure with Futures.

The a50 China Index ETF is based on a diverse group of the 50 largest companies by full market capitalisation in the mainland Chinese market.

This group includes a range of sectors, but the Index has a balanced sector weighting methodology, which may offer greater liquidity and investability.

The Index is designed to meet the requirements of investors in China's mainland A-share markets and has a high correlation to broad China A-share benchmarks.

Here are some key features of the underlying Index:

The MSCI China A 50 Connect Index is designed to meet the requirements of investors in China's mainland A-share markets, offering high correlation to broad China A-share benchmarks.

This index is made up of the 50 largest companies by full market capitalisation in the mainland Chinese market.

The MSCI China A 50 Connect Index has a balanced sector weighting methodology and focuses on China's largest, most liquid securities, which may offer greater liquidity and investability.

Here's a breakdown of the index's features:

The Premium/Discount History of an investment fund is a crucial aspect to understand. It shows the difference between the daily market price of shares and the fund's net asset value (NAV).

In 2024, the fund was traded at a discount for 173 days, and at a premium for only 72 days. In contrast, during Q1 2025, the fund was traded at a discount for 19 days and at a premium for only 10 days.

The chart and table provided show a clear picture of the fund's premium/discount history. Here's a breakdown of the data:

The data presented in the chart and table above represent past performance and cannot be used to predict future results.

The a50 China Index ETF tracks the MSCI China A 50 Connect Index, which consists of 50 large-cap Shanghai and Shenzhen listed stocks.

This index offers the first officially recognized Futures contracts for Stock Connect-eligible A-shares, making its underlying stocks attractive to international investors.

The largest and most liquid stocks are the focus of KBA, as they receive most foreign interest and inflows.

The A50 China Index ETF has shown impressive performance, with the fund's net asset value (NAV) increasing by 15.6% in the past year.

This growth can be attributed to the fund's focus on the top 50 stocks listed on the Shanghai and Shenzhen stock exchanges, which have been driving the Chinese economy forward.

The fund's expense ratio is 0.68%, which is relatively low compared to other ETFs in the market, allowing investors to keep more of their returns.

Let's take a closer look at the chart, which provides a snapshot of the fund's performance over the past few years.

The Rolling 1-year Tracking Error is 0.18% as of 31-Dec-2024.

This means that the fund's performance has deviated from the benchmark by 0.18% over the past year.

Here are the Tracking Differences for each year from 2024 to 2015:

As you can see, the Tracking Difference has been negative for most of the years, indicating that the fund's performance has lagged behind the benchmark.

The daily premium discount is a key performance indicator for any investment fund, and it's essential to understand what it means.

In the Premium/Discount History chart, the vertical axis shows the premium or discount of the daily market price as a percentage of the net asset value (NAV).

A premium occurs when the market price is higher than the NAV, and a discount occurs when the market price is lower.

According to the Premium/Discount History table, in 2024, the fund traded at a discount for 173 days, with no days trading at NAV.

In contrast, in Q1 2025, the fund traded at a discount for only 19 days, with no days trading at NAV either.

Here's a breakdown of the number of days the fund traded at a premium, NAV, or discount in 2024 and Q1 2025:

The distribution history of a fund is a crucial aspect of its performance. It shows the dates and amounts of dividend payments made to shareholders.

Let's take a look at the distribution history provided in the table below:

The distribution history shows that the fund has been paying dividends on a quarterly basis, with the most recent payment being on December 18, 2024.

The amount of the dividend payment has varied over time, ranging from 0.484915 to 6.251418.

The A50 China Index ETF has a diverse portfolio, with a range of holdings across various sectors.

The top 10 holdings in the portfolio account for a significant portion of the total assets.

Here are the top 10 holdings in the portfolio:

The largest holding in the portfolio is Contemporary A-A, which accounts for 6.92% of the total net assets.