The Global X Funds' CHIE issuer focuses on providing investors with exposure to the energy sector in China through a passive investment approach. The fund primarily invests in securities of companies operating in the energy sector within China, including those listed on various stock exchanges such as the Hong Kong Stock Exchange, Shanghai Stock Exchange, and Shenzhen Stock Exchange. The selection of securities is based on the MSCI China Energy IMI Plus 10/50 Index, which ensures diversification while capping exposure to individual issuers at 10% and collectively limiting significant holdings to 50% of the index. With a commitment to tracking the index's performance, the fund aims for a correlation exceeding 95% over time. While typically utilizing a replication strategy to mirror the index's composition, the fund may resort to representative sampling under certain circumstances to mitigate risks or logistical challenges. As of December 31, 2022, the fund's concentration aligns with that of the underlying index, which is heavily weighted towards the oil, gas, and consumable fuels industry, offering investors targeted exposure to China's energy sector.
The CHIE ETF incorporates a dividend distribution policy that aims to provide investors with potential income streams derived from the underlying securities within the Chinese energy sector. As the fund focuses on replicating the performance of the MSCI China Energy IMI Plus 10/50 Index, dividend distributions are influenced by the dividend-paying stocks held within the index. Given the nature of the energy industry, which often includes companies with stable cash flows and dividend-paying histories, CHIE investors may benefit from regular dividend distributions. The ETF's strategy of tracking the index ensures that investors can potentially capitalize on dividends from a diversified portfolio of companies involved in various energy-related activities. This approach underscores CHIE's commitment to offering investors both the potential for capital appreciation and income generation through dividend distributions reflective of the performance of the Chinese energy sector.
The CHIE ETF prides itself on its meticulous tracking of the MSCI China Energy IMI Plus 10/50 Index, emphasizing a correlation exceeding 95% over time. This dedication to precision ensures that investors can expect CHIE to mirror the movements of its benchmark index closely. By maintaining such a robust correlation, CHIE offers transparent exposure to the Chinese energy sector, aligning its investment outcomes with the performance of this critical market segment. Utilizing a passive investment approach, the ETF strategically invests in a diversified portfolio of securities within the energy industry in China, including various subsectors such as oil exploration, production, refining, and distribution. Through its commitment to tracking the index's performance, CHIE minimizes tracking error and provides investors with consistent returns reflective of the dynamics of the Chinese energy market.
The correlation between the Global X Funds' CHIE issuer and its underlying index, the MSCI China Energy IMI Plus 10/50 Index, serves as a vital metric reflecting the fund's ability to replicate index performance. With an emphasis on passive investing, CHIE aims to maintain a correlation exceeding 95% over time. This strong correlation indicates that CHIE effectively mirrors the movements of its benchmark index before fees and expenses. By closely tracking the index's performance, CHIE offers investors the potential to achieve returns that closely align with those of the Chinese energy sector. This commitment to correlation underscores the fund's objective of providing investors with transparent exposure to this specific market segment while minimizing tracking error and ensuring consistency in investment outcomes.
The sector focus of the Global X Funds' CHIE issuer lies within the energy industry in China, offering investors targeted exposure to this vital segment of the economy. CHIE concentrates its investments in securities of companies operating within the energy sector, as classified by the Global Industry Classification System (GICS). These companies encompass a range of activities, including oil exploration and production, refining, and distribution, among others. By tracking the performance of the MSCI China Energy IMI Plus 10/50 Index, CHIE ensures broad representation across various subsectors within the energy industry, providing investors with diversified exposure to this critical sector of the Chinese economy. This sector-specific focus allows investors to capitalize on opportunities within the Chinese energy market while aligning with the fund's investment objective of replicating the performance of its underlying index.
The Global X Funds' CHIE issuer provides investors with exposure to the Chinese energy sector through a diversified portfolio of securities. By investing in companies operating within the energy industry in China, CHIE offers investors the opportunity to participate in the growth and development of this key sector of the Chinese economy. With a focus on tracking the performance of the MSCI China Energy IMI Plus 10/50 Index, CHIE ensures broad exposure across various market capitalizations and subsectors within the energy industry. This exposure allows investors to access a wide range of companies involved in oil exploration and production, refining, distribution, and other related activities. Through its investment approach, CHIE seeks to offer investors transparent and efficient access to the Chinese energy market, providing an opportunity to capitalize on potential growth opportunities within this dynamic sector.
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