CHIM issuer, the Global X Funds, directs its investment strategy towards the MSCI China Materials 10/50 Index (Underlying Index), with a commitment to allocate at least 80% of its total assets to securities within this index, alongside American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) based on these securities. The fund maintains a focus on materials companies economically linked to China, as defined by the Global Industry Classification System (GICS), constituting its primary investment targets. This strategy, while non-fundamental, ensures shareholder notification of any changes with a 60-day notice period. The Underlying Index, managed by MSCI Inc., tracks the performance of companies within the MSCI China Index operating in the materials sector, encompassing various types of securities including H-Shares, B-Shares, Red Chips, P-Chips, and A-Shares accessible through Stock Connect Programs. The Underlying Index employs a rules-based methodology, with periodic rebalancing to ensure diversification and manage risk, including the implementation of a 10/50 Cap to prevent over-concentration. The fund's approach emphasizes passive indexing, aiming to mirror the performance of the Underlying Index closely. While typically utilizing a replication strategy, the fund may employ representative sampling in certain situations to mitigate practical challenges or legal restrictions. This strategy expects a high correlation, exceeding 95%, between the fund's performance and that of the Underlying Index. Additionally, the fund's concentration aligns with the sectoral focus of the Underlying Index, as observed in its significant exposure to the chemicals, metals, and mining industries as of December 31, 2022.
CHIM, an exchange-traded fund managed by Global X Funds, offers investors exposure to dividends through its investment strategy focused on the MSCI China Materials 10/50 Index. By investing in securities of materials companies economically tied to China, CHIM provides potential dividend income to shareholders. As the fund concentrates on companies within the materials sector, dividends may stem from various sources such as chemical producers, metal manufacturers, and mining operations. CHIM's dividend distribution is subject to the performance and dividend policies of the underlying companies held within the index. Investors seeking income from Chinese materials companies can consider CHIM as a potential avenue for dividend yield within their investment portfolios.
CHIM, managed by Global X Funds, employs a tracking strategy designed to mirror the performance of the MSCI China Materials 10/50 Index. This indexing approach aims to replicate the returns of the underlying index by investing in securities in a manner that closely resembles the composition and weightings of the index components. CHIM utilizes either a replication strategy, where it invests in securities of the underlying index in similar proportions, or a representative sampling strategy when replication might be impractical or disadvantageous. Through this tracking methodology, CHIM seeks to achieve a high level of correlation with the performance of the underlying index, aiming for a correlation exceeding 95% over time. Investors looking for exposure to Chinese materials companies can rely on CHIM's tracking strategy to capture the market movements and returns of the MSCI China Materials 10/50 Index efficiently.
CHIM, managed by Global X Funds, emphasizes a correlation strategy to closely align its performance with that of the MSCI China Materials 10/50 Index. The fund aims to achieve a correlation exceeding 95% over time, indicating a strong synchronization with the movements of the underlying index. This correlation approach ensures that CHIM effectively tracks the performance of Chinese materials companies as represented by the index, providing investors with a reliable tool to capture market trends and returns within this sector. By maintaining a high correlation with the underlying index, CHIM offers investors a transparent and efficient means to gain exposure to the Chinese materials market while minimizing tracking error and maximizing investment outcomes.
CHIM, managed by Global X Funds, focuses its investment strategy on the materials sector within China. The fund seeks to provide investors with exposure to companies involved in the production and distribution of various materials, including chemicals, metals, and mining products, among others. By concentrating on this sector, CHIM aims to capitalize on the growth and development of China's industrial economy, which relies heavily on materials for infrastructure, construction, and manufacturing. This sectoral focus aligns with China's ongoing industrialization and urbanization efforts, presenting opportunities for potential long-term growth and diversification within investors' portfolios. Through CHIM, investors can gain access to the dynamic and evolving landscape of the Chinese materials sector, positioning themselves to benefit from its expansion and contribution to the country's overall economic growth.
CHIM, managed by Global X Funds, offers investors exposure to the Chinese materials sector through its investment strategy centered around the MSCI China Materials 10/50 Index. By allocating at least 80% of its total assets to securities within this index, along with American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) based on these securities, CHIM provides investors with direct access to companies involved in materials production and distribution in China. This exposure encompasses a wide range of industries within the materials sector, including chemicals, metals, and mining, reflecting the diverse nature of China's industrial economy. CHIM's investment approach enables investors to participate in the growth and development of China's materials sector, which plays a vital role in supporting the country's infrastructure development, construction activities, and manufacturing operations. Through CHIM, investors can diversify their portfolios and capitalize on the opportunities presented by China's ongoing economic expansion and industrialization.
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