MCHI Profile
iShares MSCI China ETF provides targeted exposure to the Chinese equity markets by investing primarily in a broad range of Chinese companies. Under normal conditions, the fund allocates at least 80% of its assets to the component securities of its underlying index, as well as investments with economic characteristics substantially similar to those of the index's components. This strategy ensures that the fund closely mirrors the performance of the Chinese equity markets, focusing on high-market-cap stocks.
The underlying index tracked by the ETF is a free float-adjusted, market capitalization-weighted benchmark designed to reflect the performance of the largest and most liquid Chinese equities. Specifically, it encompasses the top 85% of market capitalization within the Chinese equity markets, including H-shares and B-shares. By including these major segments of the market, the index offers a comprehensive representation of the Chinese equity landscape.
The fund's investment approach targets companies across a wide spectrum of industries within China, providing investors with exposure to the economic growth and development of the region. This includes large-cap stocks that play a significant role in the Chinese economy, enabling investors to benefit from the performance of leading firms in one of the world's largest and fastest-growing markets.
As a non-diversified fund, the iShares MSCI China ETF focuses its investments within the Chinese equity market, concentrating its exposure on a specific geographic and economic region. This concentrated investment strategy allows investors to gain a deep and focused view of the Chinese market, making it a strategic choice for those looking to capitalize on China's economic potential and market dynamics.
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