GXC Profile
The SPDR S&P China ETF is designed to provide investors with comprehensive exposure to the Chinese equity market by tracking a broad-based index of publicly traded companies domiciled in China. The fund typically invests at least 80% of its total assets in the securities that make up its underlying index, as well as in depositary receipts representing these securities. This strategy allows investors to gain significant exposure to Chinese companies, offering a diversified entry point into one of the world's largest and most dynamic economies.
The index tracked by the fund is a market capitalization-weighted benchmark that captures a wide range of publicly traded companies in China. It is specifically designed to represent the investable universe of Chinese equities available to foreign investors. The index includes large-cap, mid-cap, and some small-cap companies, providing a comprehensive view of the Chinese market across various sectors and industries.
The SPDR S&P China ETF aims to reflect the performance of this index as accurately as possible by investing primarily in the constituent securities of the index. This includes both direct investments in Chinese stocks and indirect investments through depositary receipts, which represent shares of companies listed on international exchanges. This dual approach ensures that the fund can capture the performance of the underlying index while also accommodating the practicalities of investing in Chinese equities from abroad.
Investors should be aware that investing in Chinese equities involves unique risks, including geopolitical, economic, and regulatory factors specific to China. Additionally, the fund’s focus on a market with significant growth potential may also entail higher volatility compared to more developed markets. The SPDR S&P China ETF is designed to offer investors a strategic entry into the Chinese market while navigating these complexities, leveraging a broad-based index to deliver exposure to a diverse array of companies within the region.
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