China exchange traded funds benchmarked to indexes provided by U.K.-based FTSE Group have topped a combined $24 billion in assets under management, according to the index provider.
Among China ETFs tracking FTSE indexes to recently hit major milestones are the iShares FTSE A50 China Index ETF, which hit $10 billion in assets under management on its tenth anniversary, and the CSOP FTSE China A50 ETF, The CSOP FTSE China A50 ETF topped $5 billion in AUM earlier this month, according to FTSE.
The FTSE China A50 Index comprises the largest 50 A Share companies by full market capitalisation listed on the Shanghai and Shenzhen Stock Exchanges. Among the largest constituents of the index are Ping An Insurance, China Vanke and Gree Electric Appliances
The iShares China Large-Cap ETF (NYSEArca: FXI), the largest U.S.-listed China ETF, tracks the FTSE China 50 Index and had $5.6 billion in AUM as of Dec. 17. FXI has risen 5.6% year-to-date.
FXI is the only U.S.-listed China ETF tracking a FTSE index, but that could change given the index provider’s expanding presence in the world’s largest ETF market. In addition to FXI, over 100 U.S. ETFs, including massive funds such as the Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO) and the Vanguard FTSE Europe ETF (NYSEArca: VGK), benchmark to FTSE indices. [FTSE Increases U.S. Index Presence]
“With the IMF recently announcing that China has overtaken the USA to claim the title of the world’s largest economy, FTSE has continued to support market participants’ ever-increasing demand for access to the country. With a strong track record of developing China-focused benchmarks, FTSE offers a range of products for global and domestic participants. In November 2014, ETF AUM tracking FTSE China Index Series reached over $24bn for the first time,” said FTSE in a statement.