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
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.