CXSE Profile
WisdomTree China ex-State-Owned Enterprises Fund is an actively managed exchange-traded fund (ETF) that focuses on providing investment exposure to the Chinese equity market while excluding state-owned enterprises (SOEs). Under normal market conditions, the fund is committed to investing at least 80% of its total assets, excluding collateral held from securities lending, in securities that are constituents of its underlying index. This includes investments that have economic characteristics substantially similar to those of the index's component securities.
The underlying index is a modified float-adjusted market capitalization-weighted benchmark that captures the performance of common stocks listed in China. However, it specifically excludes common stocks of state-owned enterprises, thereby focusing on the performance of privately owned and other non-SOE companies within the Chinese market. This approach aims to provide investors with exposure to a segment of the market that may offer different growth dynamics compared to state-controlled entities.
By excluding state-owned enterprises, the fund seeks to highlight the potential investment opportunities within China's private sector and other non-SOE companies. These firms are often seen as more responsive to market conditions and innovations, potentially offering higher growth prospects compared to their state-owned counterparts. The fund's strategy is designed to capitalize on the evolving economic landscape of China, emphasizing companies that may drive economic growth and technological advancements.
WisdomTree China ex-State-Owned Enterprises Fund is suitable for investors looking to gain targeted exposure to the Chinese equity market while avoiding the influence of state-owned enterprises. The fund's investment approach provides a focused opportunity to invest in China's dynamic and rapidly changing market, offering potential benefits from the growth and development of non-SOE companies. This strategy aims to align with broader investment goals while navigating the complexities of China's diverse economic environment.
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