NEW YORK (
We've been following the CSI 300 for quite some time in advance of this ETF being issued and are glad to see it available. It best features the investment climate within China itself beyond most China-related ETFs popular and widely followed.
A more critical issue is the 13.87% premium PEK is currently trading at over the index. This large premium has been at around this level (low of near 9% to a high of near 20%) since issuance. For ETF investors, this may be off-putting since wide swings lead to tracking inefficiencies.
The Missing LinkThe primary reason for the premium is Van Eck does not have a QFII (Qualified Foreign Institutional Investor) license permitting it to deal in buying A-shares. Until it receives this license, it must go through an intermediary with that license (in this case Credit Suisse Securities (Europe) to gain exposure to the index.
It's an intriguing and important issue. Van Eck was smart to cover this index before competitors. It may be most investors will be content to wait for QFII license to be issued. In the meantime, investors should have their eyes on this issue. Over the long term, an issue like PEK may be the most direct way to invest in growing Chinese markets.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
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
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV