VanEck Vectors New China ESG UCITS ETF
ISIN: IE0000H445G8
Risk: You may lose money up to the total loss of your investment due to the Main Risk Factors such as foreign currency risk, emerging markets risk and risk of investing in smaller companies which are described below and in the sales prospectus.
China is one of the world’s fastest growing major economies1: its ‘new economy’ companies are likely to grow even faster than the rest of the country.
1Source: The World Bank Data as of 2019. GDP growth: 6.1%.
We are witnessing at a global level the most rapid expansion of the middle class the world have even seen. By 2030, Asia could represent 2/3 of the global middle class population1. The companies that serve them are likely to grow even faster than the rest of China.
New consumers are fueling China’s astounding growth, spending money on Innovative Technologies, Healthcare and pharmaceuticals, Consumption goods and Consumer staples.
China’s wealth is currently shifting to the new economy. An opportunity that heads out ample room for further growth.
1Source: The Brookings Institution. Global Economy & Development Working Paper 100, February 2017.
The ETF tracks the MarketGrader New China ESG Index, which includes companies from just four sectors: consumer discretionary, consumer staples, healthcare and technology. The index selects the top 100 fundamentally sound companies, continually ranking them according to four factors – growth, valuation, profitability and cash flow.
Beyond that, companies must rank above the regional median environmental, social and governance (ESG) score, as measured by OWL Analytics.
ISIN: IE0000H445G8
Lower risk: Typically lower reward
Higher risk: Typically higher reward
Because all or a portion of the Fund are being invested in securities denominated in foreign currencies, the Fund’s exposure to foreign currencies and changes in the value of foreign currencies versus the base currency may result in reduced returns for the Fund, and the value of certain foreign currencies may be subject to a high degree of fluctuation.
Investments in emerging market countries are subject to specific risks and securities are generally less liquid and less efficient and securities markets may be less well regulated. Specific risks may be heightened by currency fluctuations and exchange control; imposition of restrictions on the repatriation of funds or other assets; governmental interference; higher inflation; social, economic and political uncertainties. Further risks of investing in China: The assessment of Chinese financial reports by relevant regulators may not be adequate.
The securities of smaller companies may be more volatile and less liquid than the securities of large companies. Smaller companies, when compared with larger companies, may have a shorter history of operations, fewer financial resources, less competitive strength, may have a less diversified product line, may be more susceptible to market pressure and may have a smaller market for their securities.
For more information on risks, please see the “Risk Factors” section of the relevant Fund’s prospectus, available on www.vaneck.com.
It’s one of the basic truths of investing that you must always think ahead rather than look back. After all, if nothing else investing is about discounting the future. That’s why many clever investors are upping their investment in China, putting it at the core of their portfolios.
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