VanEck Blog & Insights

VanEck Vectors China New Economy ETF CNEW

Fund description: CNEW gives investors a portfolio of the most fundamentally sound companies in China having the best growth prospects in sectors making up ‘the New Economy’, namely technology, health care, consumer staples and consumer discretionary. CNEW aims to provide investment returns, before fees and other costs, which track the performance of the Index.

Index description: The CSI MarketGrader China New Economy Index aims to select the 120 companies in China with the best growth at a reasonable price (GARP) attributes, which are considered the best drivers of long-term capital appreciation. Companies are selected on the basis of the strength of 24 fundamental indicators across four factor categories: growth, value, profitability and cash flow.

Management style: Replication

 

  • Exchange

    ASX
  • ASX code

    CNEW
  • Bloomberg index code

    CSIN1086
  • Index provider

    China Securities Index Co, Ltd.
  • NAV1

    $6.61
  • Shares outstanding1

    3,800,000
  • Net assets1

    $25.1M
  • Number of holdings1

    120
  • Inception date2

    08-Nov-18
  • ASX commencement

    09-Nov-18
1As of the close of the previous trading day.
2The date the ETF was seeded prior to quotation on ASX.

as at 20-Mar-19

Key points

Underlying Index:

CSI MarketGrader China New Economy Index

Underlying universe:

All A-shares listed on the Shanghai and Shenzhen Stock Exchanges that are covered and rated by MarketGrader, that are classified as consumer discretionary, consumer staples, health care or technology, and which have not suffered losses for two or more consecutive years.

Selection criteria:

All Index components are selected based on their overall MarketGrader grade. Built on a scale between 0 and 100, the MarketGrader grade is based on 24 fundamental indicators, which are broken down into four analytical categories: growth, value, profitability and cash flow. All of MarketGrader’s indicators and overall grades are calculated daily for all companies under coverage.

Weighting:

The Index is equally weighted.

Market Capitalisation requirements:

All Index constituents must have a minimum total market cap of RMB 1.38 billion. At least 20% of all Index constituents (24 companies, 6 from each sector) must be designated as large or mid-caps according to MarketGrader’s annual size classification of all Shanghai and Shenzhen-listed equities under coverage.

Liquidity requirements:

A minimum 3-month daily traded value of RMB 13.8 million and at least 12-month aggregate trading volume of RMB 345 million as of the selection date.

Rebalance frequency:

The Index is reconstituted and rebalanced twice a year on the next trading day after the close of trading on the second Friday in June and December.

Index profile  

  • Bloomberg index code

    CSIN1086
  • Base date

    31-Dec-07
  • Rebalance frequency

    Semi-Annually

Top ten index constituents (%) as at 28-Feb-19

Total constituents: 120
Constituent name
Ticker
Weightings (%)
SHANDONG XIANTAN CO LTD-A
2746 CH
1.14
FUJIAN SUNNER DEVELOPMENT-A
002299 CH
1.11
UNILUMIN GROUP CO LTD-A
300232 CH
1.06
JILIN ZIXIN PHARMACEUTICAL-A
2118 CH
1.05
LUXSHARE PRECISION INDUSTR-A
002475 CH
1.02
HANGZHOU ANYSOFT INFORMATI-A
300571 CH
1.00
WULIANGYE YIBIN CO LTD-A
000858 CH
0.99
ANHUI GUJING DISTILLERY CO-A
000596 CH
0.97
SHANGHAI CONANT MACROFLAG-A
300061 CH
0.97
GUANGDONG GOWORLD CO-A
823 CH
0.96
Top ten total (%) 10.27
These are not recommendations to buy or to sell any security. Securities and holdings may vary.

Index sector weightings (%) as at 28-Feb-19

  • Sector

    Weightings (%)
  • Consumer Staples

    26.0
  • Health Care

    24.8
  • Information Technology

    19.3
  • Consumer Discretionary

    19.3
  • Communication Services

    4.6
  • Industrials

    4.2
  • Materials

    1.7
  • OTHERS

    0.0
  • Total

    99.9