New Listing

DWS launches China tech ETF

XCTE will target the internet, mobility, industrials and healthcare themes

Theo Andrew

Simon Klein

DWS has launched a China tech ETF targeting high-growth investment themes within the Chinese markets.

The Xtrackers Harvest MSCI China Tech 100 UCITS ETF (XCTE) is listed on the London Stock Exchange and the Deutsche Boerse with a total expense ratio (TER) of 0.55%.

XCTE will track the MSCI China All Shares Technology Select ESG Screened 100 index which is broken down into four investment themes; internet, mobility, industrials and healthcare earmarked as themes of the future.

The ETF will hold shares of Chinese companies listed on Chinese and international stock exchanges that have a high share of revenue in these four areas.

For example, the mobility theme will include activities such as batteries or smart mobility, while internet will include cybersecurity and fintechs.

The index will cap shares weightings at 4.5% in a bid to offer diversified exposure.

While the index will be screened, excluding companies that exceed certain turnover thresholds in sectors such as tobacco, thermal coal or civilian weapons.

Simon Klein (pictured), head of passive sales at DWS, said: "The pace of innovation in key sectors of the Chinese economy remains high, and it is difficult for investors to identify attractive companies. This is where the XCTE offers a very good alternative through its thematic index constructions."

Last month, DWS unveiled two Paris-aligned climate ETFs, the Xtrackers EMU Net Zero Pathway Paris Aligned UCITS ETF (XNZE) and the Xtrackers World Net Zero Pathway Paris Aligned UCITS ETF (XNZW).

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