Creation limits often lead to ETFs, particularly those with exposure to markets that are closed during the U.S. trading day, trading at premiums to net asset value. Professional traders then look to profit from the gap between the ETF’s market price and lower NAV by shorting the ETF. Since the start of 2015, ASHR has traded at a premium to its NAV in 26 days, according to DAWM data. [Shorts Eye A-Shares ETF]
DAWM also said a previously announced creation limit on Deutsche X-trackers Harvest CSI 500 China A-Shares Small Cap Fund (NYSEArca: ASHS), the small-cap answer to ASHR, has been increased as well. In November, DAWM ASHS would be subject to one creation per day, but that number has also been increased to 25 creations per day.
The $27 million ASHS is one of 2015’s best performing China ETFs with a year-to-date gain of 12.6%.
Deutsche X-trackers Harvest CSI 300 China A-Shares ETF
