Strong Demand Forces Deutsche to Limit Creations in A-Shares ETFs

ASHR debuted in early November 2013 and has raced to almost $435 million in assets under management, making it not only one of the most successful ETFs to launch last year, but also the largest U.S.-listed A-shares ETF. [A-Shares ETFs Stand Tall]

Investor interest in A-shares has been strong enough over the past year that Deutsche was able to trim ASHR’s expense ratio to 0.82% per year soon after the ETF’s launch. The German banking giant has also indicated it could expand its lineup of A-shares ETFs to include sector funds.

ASHS, which debuted in May, has $6.4 million. The ETF was the first to trade in the U.S. focusing exclusively on A-shares small-caps. ASHS has a RQFII quota of 100 million renminbi while ASHR’s is 3.25 billion renminbi, according to Deutsche data.

Investors looking to maintain exposure to ASHR and ASHS while creations are temporarily limited can also opt for the new Deutsche X-trackers Harvest MSCI All China Equity Fund (NYSEArca: CN). CN debuted at the end of April and its top-two holdings are an almost 42% allocation to ASHR and an 8.2% weight to ASHS.

Deutsche X-trackers Harvest CSI 300 China A-Shares Fund