The United SSE 50 China ETF (the "Fund"), aims to provide investment results that, before fees, costs and expenses (including any taxes and withholding taxes), closely correspond to the performance of the SSE 50 Index.
Key features of the Fund
The SSE 50 Index is an index consisting of the 50 largest stocks of good liquidity listed on the Shanghai Stock Exchange. The SSE 50 Index's simple approach has led to a clear and transparent selection of its underlying constituents:
Although the SSE 50 Index has a small number of constituents, it represents over 36% of the SSE, based on market capitalisation.1 Additionally, the SSE 50 Index is highly correlated to the broader China A-shares Market, making the Index relevant to investors looking for China A-shares exposure.
SSE 50 Index methodology3
Access to China onshore equities with the SSE 50 Index
*ADR is the abbreviation for "American Depository Receipt". Note: Listed securities here are with at least US$1 billion market cap and US$1 million turnover per day.
Why invest in China?
China's strengths
Domestic consumption and rising affluence
China’s growing domestic consumption, rising affluence and preference for local brands will likely lead to an increase in demand for goods and services provided by China's onshore leading companies.
Kweichow Moutai Co. Ltd., the top constituent of the SSE 50 Index, holds the top spot on the list of the world's most valuable spirit brands in 2023.
Fund details | |
Manager | UOB Asset Management Ltd |
Trustee | State Street Trust (SG) Limited |
Index | SSE 50 Index |
Stock Exchange | Singapore Exchange Securities Trading Limited (SGX) |
Management Fee11 | Currently 0.45% p.a. |
Trustee Fee11 | Currently not more than 0.05% p.a |
No. of Index Constituents | 50 |
Replication Method | Physical replication |
Listing Date | 26 November 2009 |
Currency Class | SGD Class Unit |
SGX Stock Code | JK8 |
Trading Size | Buy/sell on SGX: Trading Board Lots of 1 unit Subscribe/redeem through Participating Dealer: Minimum 100,000 units |
Participating Dealers | Phillip Securities Pte Ltd UOB Kay Hian Pte Ltd |
Designated Market Maker | Phillip Securities Pte Ltd |
Fund Classification for Retail Investors | Units of the Fund are Excluded Investment Products (EIP). |
NAV per unit | Please refer to Fund Prices |
Tracking Difference and Tracking Error | Please refer to Fund Factsheet |
1 Source: Bloomberg, as of 30 June 2024.
2 Source: Bloomberg, as of 30 June 2024, based on the weekly data from the past 5 years. Note: A perfect positive correlation means that the correlation coefficient is exactly 1. This implies that as one security moves, either up or down, the other security moves in lockstep, in the same direction. A perfect negative correlation means that two assets move in opposite directions, while a zero correlation implies no linear relationship at all.
3 Source: China Securities Index Company Limited, December 2020.
4 Source: UOBAM, as of 13 August 2024.
5 Source: World Options, World's Top Exporters And Importers – Updated 2024, as of 4 February 2024
6 Source: World Data Lab, as of 20 August 2024.
7 Source: World Economic Forum, China's Belt and Road Initiative turns 10. Here's what to know, as of 20 Nov 2023.
8 Source: McKinsey & Company, Five consumer trends shaping the next decade of growth in China, 11 November 2021.
9 Source: Companies’ financial reports, 2022 – 2023, CarNewsChina, and BankMyCell and Forrester, From Dominance To Decline: Global Brands Are Losing In China, 27 February 2024.
10 Source: Brand Finance – Spirits 50 2023 ranking, July 2023.
11 Please refer to the Fund's prospectus for details on fees and charges (including fees and charges payable on subscriptions).
Available for subscription on:
Phillip Securities Pte Ltd
UOB Kay Hian Pte Ltd
This document is for general information only. It does not constitute an offer or solicitation to deal in units in the Fund ("Units") or investment advice or recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it.
The information contained in this document, including any data, projections and underlying assumptions, are based upon certain assumptions, management forecasts and analysis of information available and reflects prevailing conditions and UOB Asset Management Ltd’s ("UOBAM") views as of the date of the document, all of which are subject to change at any time without notice. In preparing this document, UOBAM has relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by UOBAM. While the information provided herein is believed to be reliable, UOBAM makes no representation or warranty whether express or implied, and accepts no responsibility or liability for its completeness or accuracy. Nothing in this document shall, under any circumstances constitute a continuing representation or give rise to any implication that there has not been or there will not be any change affecting the Fund. No representation or promise as to the performance of the Fund or the return on your investment is made. Past performance of the Fund or UOBAM and any past performance or prediction, projection or forecast of the economic trends or securities market are not necessarily indicative of the future or likely performance of the Fund or UOBAM. The value of Units and the income from them, if any, may fall as well as rise, and is likely to have high volatility due to the investment policies and/or portfolio management techniques employed by the Fund. Investments in Units involve risks, including the possible loss of the principal amount invested, and are not obligations of, deposits in, or guaranteed or insured by United Overseas Bank Limited ("UOB"), UOBAM, or any of their subsidiary, associate or affiliate ("UOB Group") or distributors of the Fund. The Fund may use or invest in financial derivative instruments and you should be aware of the risks associated with investments in financial derivative instruments which are described in the Fund's prospectus. The UOB Group may have interests in the Units and may also perform or seek to perform brokering and other investment or securities-related services for the Fund.
Investors should note that the Fund is not like a conventional unit trust in that an investor cannot redeem his Units directly with UOBAM and can only do so through the participating dealers, Phillip Securities Pte Ltd and UOB Kay Hian Pte Ltd, (either directly or through a stockbroker) if his redemption amount satisfies a prescribed minimum that will be comparatively larger than that required for redemptions of units in a conventional unit trust. An investor may therefore only be able to realise the value of his Units by selling the Units on the Singapore Exchange Limited ("SGX"). Investors should also note that any listing and quotation of Units on the SGX does not guarantee a liquid market for the Units.
An investment in unit trusts is subject to investment risks and foreign exchange risks, including the possible loss of all or part of the principal amount invested. Investors should read the Fund's prospectus and product highlights sheet, which are available and may be obtained from UOBAM or any of its appointed agents or distributors, before deciding whether to subscribe for or purchase any Units. You are responsible for your own investment decisions. You may wish to seek advice from a financial adviser before making a commitment to invest in any Units, and in the event that you choose not to do so, you should consider carefully whether the Fund is suitable for you.
The Fund is not in any way endorsed, sold, sponsored or promoted by the Shanghai Stock Exchange or China Securities Index Co., Ltd. The Shanghai Stock Exchange and China Securities Index Co., Ltd. make no warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the SSE 50 Index (the "SSE 50"), and/or the figure at which the SSE 50 stands at any particular time on any particular day or otherwise, and/or the accuracy of the SSE 50. The Shanghai Stock Exchange and China Securities Index Co., Ltd. shall not be liable (whether in negligence or otherwise) to any person for any error in the SSE 50 and shall not be under any obligation to advise any person of any error therein.
This advertisement has not been reviewed by the Monetary Authority of Singapore.