Bartolini and Rowley will also discuss GXC’s exposure to N-Shares: Chinese companies, including many of China’s newest and most prominent technology firms, with a primary listing on one of the New York stock exchanges.
That includes GXC’s 6.2% weight to Baidu (NasdaqGS: BIDU). China’s largest Internet search provider is not a member of FXI’s lineup.
However, GXC’s underlying index, the S&P China BMI Index, allows for the inclusion of Chinese companies that only have U.S. listings while some rival ETFs and index providers stipulate that companies must be listed in China to be included in China ETFs.
Yes, that means GXC could eventually be home to Alibaba (NYSE: BABA). Prior to the company’s September initial public offering, S&P Dow Jones Indices said, “According to our published index rules, Alibaba Group Holding would be eligible for all standard S&P Dow Jones Global Benchmarks that include Chinese stocks. In particular, it will be screened for inclusion in the S&P China BMI, and therefore the S&P Emerging BMI and S&P Global BMI, according to the index’s standard IPO addition policy.” [S&P Indices to Include Alibaba]
Financial advisors who are interested in learning more about GXC and its approach to Chinese stocks can register for the Thursday Nov. 20 webcast here.
Todd Shriber owns shares of Alibaba.