The WisdomTree , issuer of CXSE, utilizes a passive management investment strategy, aiming to replicate the performance of its underlying index. The index, a modified float-adjusted market cap weighted index, encompasses Chinese common stocks, excluding those of state-owned enterprises and companies failing to meet certain criteria. Companies in the index must adhere to environmental, social, and governance (ESG) standards and exclude those involved in controversial activities. Additionally, the index includes the 100 largest mainland Chinese companies listed on the Shanghai or Shenzhen Stock Exchanges through Stock Connect programs. The index's composition is subject to periodic screening and adjustments, with securities weighted based on market capitalization, albeit with caps on individual security and sector exposure. Sector classification follows the Global Industry Classification Standard (GICS®), enabling sector diversification within the index. Notably, if the index concentrates heavily in certain industries, the fund will mirror this concentration, emphasizing adherence to the index's sector allocations and screening criteria.
The CXSE Dividend seeks to provide investors with exposure to dividend-paying Chinese companies while maintaining a focus on sustainability and governance. As part of its investment approach, the fund employs a passive management strategy, tracking the performance of its underlying index. This index consists of dividend-paying companies in China, excluding state-owned enterprises and those failing to meet specific ESG criteria. By investing in dividend-yielding stocks, the fund aims to provide investors with a potential income stream while aligning with principles of responsible investing. Additionally, the fund's adherence to ESG standards ensures that it excludes companies involved in controversial activities and prioritizes those demonstrating strong environmental, social, and governance practices. Through its diversified portfolio and focus on dividend-paying securities, the CXSE Dividend aims to offer investors a balanced approach to investing in Chinese equities with an emphasis on sustainable income generation.
The CXSE Tracking fund is designed to closely follow the performance of its underlying index through a passive management strategy. This index, a modified float-adjusted market cap weighted index, comprises Chinese common stocks, excluding state-owned enterprises and companies not meeting specific criteria. Employing a representative sampling strategy, the fund invests in a sample of securities that mirror the risk, return, and other characteristics of the index. With at least 80% of its total assets typically invested in component securities of the index, the fund aims to replicate the index's performance accurately. Additionally, the index's methodology includes criteria such as environmental, social, and governance (ESG) standards, ensuring the inclusion of companies demonstrating responsible business practices. Through diligent tracking of the index's composition and performance, the CXSE Tracking fund offers investors exposure to Chinese equities while aiming to deliver consistent returns aligned with the index's performance.
The CXSE Correlation fund seeks to maintain a strong correlation with its underlying index, employing a strategy focused on tracking the index's performance closely. By utilizing a passive management approach, the fund invests in a diversified portfolio of Chinese common stocks that closely resemble the composition of the index. With at least 80% of its total assets typically invested in component securities of the index, the fund aims to replicate the index's movements effectively. The index itself is constructed using a modified float-adjusted market cap weighted methodology, with specific criteria excluding state-owned enterprises and emphasizing environmental, social, and governance (ESG) standards. By adhering to the index's composition and investment criteria, the CXSE Correlation fund aims to achieve a high degree of correlation with the index, providing investors with exposure to Chinese equities while minimizing tracking error and maximizing correlation with the benchmark.
The CXSE Sector fund offers investors exposure to a diversified range of sectors within the Chinese equity market. Employing a passive management strategy, the fund tracks the performance of its underlying index, which encompasses various sectors including communication services, consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials, real estate, and utilities. This index is constructed using the Global Industry Classification Standard (GICS®), ensuring a comprehensive sector representation. With the index's methodology designed to capture sector diversification, the CXSE Sector fund provides investors with the opportunity to access a broad spectrum of Chinese industries while maintaining alignment with globally recognized sector classification standards. By investing in a diverse array of sectors, the fund aims to mitigate sector-specific risks and capitalize on the growth potential of different segments of the Chinese economy, offering investors a balanced approach to investing in Chinese equities.
The CXSE Exposure fund offers investors targeted exposure to Chinese equities, focusing on companies that meet specific criteria for inclusion in its underlying index. Utilizing a passive management strategy, the fund tracks the performance of this index, which consists of Chinese common stocks meeting stringent eligibility requirements. These criteria encompass factors such as market capitalization, trading volume, and adherence to environmental, social, and governance (ESG) standards. By investing in a diversified portfolio of Chinese companies, the fund provides investors with exposure to one of the world's largest and fastest-growing economies. With a focus on capturing the growth potential of the Chinese market while adhering to responsible investing principles, the CXSE Exposure fund offers investors a strategic avenue for gaining exposure to Chinese equities within their investment portfolios.
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