China Infrastructure ETF Launches

A new exchange-traded fund (ETF) that purports to be the first China Infrastructure ETF has launched.

Emerging Global Shares (EG Shares), which describes itself as the “first dedicated emerging markets sector ETF provider”, has launched the China Infrastructure Index Exchange-Traded Fund (ticker: CHXX), an ETF focused solely on the infrastructure sector in China.  According to the announcement, the fund invests in 30 of the largest publicly traded companies dedicated to the infrastructure industry in that country, and is designed to track the performance of the INDXX China Infrastructure Index.      

“China has made enormous progress in their infrastructure development, but the country still has literally decades of infrastructure build-outs and ongoing maintenance ahead of them to keep pace with their economic and population expansion,” said Robert Holderith, President and CEO of EG Shares, in the announcement. “That, combined with research which shows that emerging markets should provide about 80 percent of the entire world’s growth over the next 10 years, makes the China Infrastructure ETF launch timely.”      

The China Infrastructure Index has an average market capitalization of $8.3 billion and the fund charges a net expense ratio of 0.85%* (gross expense ratio: 1.10%). The top five industry weightings of the index (as of 2/1/10), are:

  • Real Estate Management & Development (22.75%)
  • Metals & Mining (15.22%)
  • Construction & Engineering (14.93%)
  • Electrical Equipment (11.70%)
  • Construction Materials (9.37%).

The Emerging Global Shares China Infrastructure Index Fund is the fifth ETF to be introduced by Emerging Global Shares. Other funds include the:

  • Emerging Global Shares Emerging Markets Metals & Mining Fund (EMT)
  • Emerging Global Shares Emerging Markets Energy Fund (EEO)
  • Emerging Global Shares Emerging Markets Financials Fund (EFN)
  • Emerging Global Shares Emerging Markets Titans Composite Index Fund (EEG).      
  • Emerging Global Advisors LLC is an independent investment advisory firm and the sponsor of the Emerging Global Shares family of ETFs.