NEW YORK ( TheStreet) -- Van Eck Global launched Market Vectors China A-Shares ETF (PEK) yesterday. Today, it's trading at more than a 14% premium to its net asset value. Is PEK truly an ETF, or is it more like a closed-end fund?PEK claims to be the only U.S.-listed ETF designed to give investors exposure to the China A-shares market, which has historically been limited to domestic investors in China and qualified foreign institutional investors. However, PEK will not be investing directly in those A-shares. Instead, it will seek to track the CSI 300 Index by investing in swaps and other types of derivatives. This approach is also used by other A-shares ETFs listed in Hong Kong, Japan, Taiwan and Singapore.
New China ETF Trades at 14% Premium
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