A mix of Chinese stimulus measures have been providing the fodder for the country’s economic growth, such as lower taxes and more market access for foreign companies to set up shop. While there are funds in the ETF universe that give broad exposure to Chinese equities, they don’t all provide the necessary exposure to the best and brightest via A-shares—now, Pacer ETFs gives investors that option.
Pacer ETFs, an ETF provider that offers strategy-driven, rules-based ETFs, has announced the acquisition of the CSOP FTSE China A50 ETF (AFTY). This constitutes Pacer’s second acquisition of an existing ETF in two months. Effective immediately, the fund will be renamed to Pacer CSOP FTSE China A50 ETF and the fund’s ticker will remain the same.
Pacer ETFs acquires fund that offers exposure to Chinese companies, continues growth
The Pacer CSOP FTSE China A50 ETF (NYSEArca: AFTY) seeks to track the FTSE China A50 Net Total Return Index and offers exposure to the 50 largest companies in the China A-Shares market. This index only trades A-shares which are distinct in that only companies incorporated in Mainland China and listed on the Shanghai or Shenzhen exchange are included.
A-shares also provides a number of advantages compared to China’s B-share and H-share classes including direct access to Chinese companies with no intermediary, less political risk than Hong Kong H-shares and improved liquidity as A-shares are accessible by both domestic and foreign investors.
“We are always looking to grow at Pacer ETFs and this acquisition is just building upon our momentum as we grow organically and through acquiring funds we see value in,” says Sean O’Hara, President of Pacer ETFs Distributors. “We’ve become known for our unique strategies and funds that complement an array of portfolios, and we think AFTY is an excellent addition to our offerings due to its exposure to China.”
“Our growth is centered around our wholesale and distribution efforts, and innovative ETF products. We take pride in helping financial advisors and their clients reach their goals,” says Joe Thomson, Founder and President of Pacer Financial. “Pacer’s success shows through our record-setting growth last year and we’re excited for what’s to come in 2020.”
Cashing In With “ECOW”
For investors looking for emerging market exposure, they might also want to check out the Pacer Emerging Markets Cash Cows 100 ETF (NasdaqGM: ECOW). ECOW is a strategy-driven ETF that aims to provide capital appreciation over time by screening the Pacer Emerging Markets Cash Cows 100 Index for the top 100 emerging markets companies based on free cash flow yield.
ECOW offers investors:
- Free cash flow is the cash remaining after a company has paid expenses, interest, taxes, and long-term investments. It can be used to buy back stock, pay dividends, or participate in mergers and acquisitions.
- The ability to generate a high free cash flow yield indicates a company is producing more cash than it needs to run the business and can invest in growth opportunities.
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