Xtrackers MSCI China A Inclusion Equity ETF
DBX ETF Trust
Expense ratio
Net assets1
$4.63M
Holdings1
515
Category
International Equity
Return

Investment objective & strategy

As of Sept. 27, 2023 · prospectus

Objective. The Xtrackers MSCI China A Inclusion Equity ETF (the fund) seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI China A Inclusion Index (the Underlying Index).

Strategy. The fund, using a passive or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the Underlying Index, which is designed to track the equity market performance of China A-Shares that are accessible through the Shanghai-Hong Kong Stock Connect program (Shanghai Connect) or the Shenzhen-Hong Kong Stock Connect program (Shenzhen Connect, and together with Shanghai Connect, Stock Connect). A-Shares are equity securities issued by companies incorporated in mainland China and are denominated in renminbi (RMB). Certain eligible A-Shares are traded on the Shanghai Stock Exchange (SSE) or Shenzhen Stock Exchange (SZSE). The Underlying Index is designed to track the inclusion of A-Shares in the MSCI Emerging Markets Index over time and is … The fund, using a passive or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the Underlying Index, which is designed to track the equity market performance of China A-Shares that are accessible through the Shanghai-Hong Kong Stock Connect program (Shanghai Connect) or the Shenzhen-Hong Kong Stock Connect program (Shenzhen Connect, and together with Shanghai Connect, Stock Connect). A-Shares are equity securities issued by companies incorporated in mainland China and are denominated in renminbi (RMB). Certain eligible A-Shares are traded on the Shanghai Stock Exchange (SSE) or Shenzhen Stock Exchange (SZSE). The Underlying Index is designed to track the inclusion of A-Shares in the MSCI Emerging Markets Index over time and is constructed by MSCI, Inc. (the Index Provider or MSCI) by applying eligibility criteria for the MSCI Global Investable Market Indexes (GIMI), and then excluding small-capitalization A-Shares (as determined by MSCI), A-Shares suspended for trading for more than 50 days in the past 12 months and A-Shares that are not accessible through Stock Connect. The Underlying Index is weighted by each issuers free float-adjusted market capitalization (i.e., includes only shares that are readily available for trading in the market) available to foreign investors and includes large- and mid-capitalization companies, as determined by MSCI. The fund intends to invest in A-Shares included in the Underlying Index primarily through Stock Connect. Stock Connect is a securities trading and clearing program with an aim to achieve mutual stock market access between the Peoples Republic of China (China or the PRC) and Hong Kong. Stock Connect was developed by Hong Kong Exchanges and Clearing Limited, the SSE (in the case of Shanghai Connect) or the SZSE (in the case of Shenzhen Connect), and China Securities Depository and Clearing Corporation Limited (CSDCC). Under Stock Connect, the funds trading of eligible A-Shares listed on the SSE or the SZSE, as applicable, would be effectuated through DBX Advisors LLC (the Advisor). Trading through Stock Connect is subject to a daily quota (Daily Quota), which limits the maximum net purchases on any particular day by Hong Kong investors (and foreign investors trading through Hong Kong) trading PRC listed securities and PRC investors trading Hong Kong listed securities through the relevant Stock Connect, and as such, buy orders for A-Shares would be rejected once the Daily Quota is exceeded (although the fund will be permitted to sell A-Shares regardless of the Daily Quota balance). The Daily Quota is not specific to the fund, but to all investors investing through the Stock Connect. Accordingly, the funds direct investments in A-Shares will be limited in part by the Daily Quota that limits total purchases through Stock Connect. From time to time, other stock exchanges in China may participate in Stock Connect, and A-Shares listed and traded on such other stock exchanges and accessible through Stock Connect may be added to the Underlying Index, as determined by MSCI. Under current regulations in China, foreign investors can also invest in the PRCs domestic securities markets through certain market-access programs. These programs include the Qualified Foreign Investor (QFI, including Qualified Foreign Institutional Investor (QFII) and Renminbi Qualified Foreign Institutional Investor (RQFII)) program, where investors will be required to obtain a license from the China Securities Regulatory Commission (CSRC) in order to participate in the program. QFIs will also need to register with Chinas State Administration of Foreign Exchange (SAFE) to remit foreign currencies which can be traded on the China Foreign Exchange Trade System (in the case of a QFII) and RMB (in the case of an RQFII) in the PRC for the purpose of investing in the PRCs domestic securities markets. Investment companies are not currently within the types of entities that are eligible for a QFI license. The fund intends to invest directly in A-Shares through Stock Connect, but, in the future, may also utilize a QFI license applied for by and granted to the Advisor and/or a subadvisor subsequently appointed for the fund. In the event the Advisor obtains a QFI license, or appoints a subadvisor that has such license, under certain circumstances, including when the funds ability to invest in A-Shares through Stock Connect is restricted as a result of the Daily Quota or otherwise, the Advisor and/or a subadvisor, on behalf of the fund, may invest in A-Shares and other permitted China securities listed on the SSE and SZSE through the QFI program. The Advisor expects to use a full replication indexing strategy to seek to track the Underlying Index. As such, the Advisor expects to invest directly in the component securities (or a substantial number of the component securities) of the Underlying Index in substantially the same weightings in which they are represented in the Underlying Index. If it is not possible for the Advisor to acquire component securities due to limited availability or regulatory restrictions, the Advisor may use a representative sampling indexing strategy to seek to track the Underlying Index instead of a full replication indexing strategy. Representative sampling is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The securities selected are expected to have, in the aggregate, investment characteristics (based on factors such as market capitalization and industry weightings), fundamental characteristics (such as return variability and yield), and liquidity measures similar to those of the Underlying Index. The fund may or may not hold all of the securities in the Underlying Index when the Advisor is using a representative sampling indexing strategy. The fund will normally invest at least 80% of its total assets in securities (including depositary receipts in respect of such securities) of issuers that comprise the Underlying Index. The fund will seek to achieve its investment objective by primarily investing directly in A-Shares. The fund intends to invest directly in A-Shares via Stock Connect and, in the future, may also utilize any QFI license applied for by and granted to the Advisor and/or a subadvisor. While the fund intends to invest primarily and directly in A-Shares, the fund also may invest in securities of issuers not included in the Underlying Index, certain derivative instruments (see Derivatives subsection) and other pooled investment vehicles, including exchange-traded funds (ETFs), whether or not managed by the Advisor, as well as foreign investment companies, that the Advisor believes will help the fund to achieve its investment objective. The remainder of the funds assets will be invested primarily in money market instruments and cash equivalents. Under normal circumstances, the fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in A-Shares of Chinese issuers or in derivative instruments and other securities that provide investment exposure to A-Shares of Chinese issuers. As of July 31, 2023, the Underlying Index consisted of 541 securities with an average market capitalization of approximately $3.16 billion and a minimum market capitalization of approximately $597 million. Under normal circumstances, the Underlying Index is reconstituted quarterly in February, May, August and November. The fund changes its portfolio in accordance with the Underlying Index, and, therefore, any changes to the Underlying Indexs reconstitution schedule will result in corresponding changes to the funds schedule of portfolio changes. Any changes made to the Underlying Index in between scheduled reconstitutions (e.g., in the event of a corporate action) also will result in corresponding changes to the funds portfolio. The fund will concentrate its investments (i.e., hold 25% or more of its total assets) in a particular industry or group of industries to the extent that the Underlying Index is concentrated. As of July 31, 2023, a significant percentage of the Underlying Index was comprised of issuers in the financials (18.72%) and industrials (15.61%) sectors. The financials sector contains companies engaged in banking, financial services, consumer finance, capital markets and insurance activities. It also includes financial exchanges and data and mortgage real estate investment trusts (REITs). The industrials sector includes manufacturers and distributors of capital goods such as aerospace and defense, building products, electrical equipment and machinery and companies that offer construction and engineering services. It also includes providers of commercial and professional services including printing, environmental and facilities services, office services and supplies, security and alarm services, human resource and employment services, research and consulting services. It also includes companies that provide transportation services. The funds exposure to particular sectors may change over time to correspond to changes in the Underlying Index. The fund may become non-diversified, as defined under the Investment Company Act of 1940, as amended, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the index that the fund is designed to track. Shareholder approval will not be sought when the fund crosses from diversified to non-diversified status under such circumstances. The fund or securities referred to herein are not sponsored, endorsed, issued, sold or promoted by MSCI, and MSCI bears no liability with respect to the fund or securities or any index on which the fund or securities are based. Derivatives. The fund may invest in derivatives, which are financial instruments whose performance is derived, at least in part, from the performance of an underlying asset, security or index. In particular, portfolio management may use futures contracts, stock index futures, options on futures, swap contracts and other types of derivatives in seeking performance that corresponds to its Underlying Index and will not use such instruments for speculative purposes. Securities lending. The fund may lend securities (up to one-third of total assets) to approved institutions, such as registered broker-dealers, pooled investment vehicles, banks and other financial institutions. In connection with such loans, the fund receives liquid collateral in an amount that is based on the type and value of the securities being lent.

Top holdings

As of Feb. 29, 2024 · N-PORT
SecurityTickerValue% of fund
KWEICHOW MOUTAI CO LTD A $264.18K 5.71%
DEUTSCHE GOV MM SER INST $113.01K 2.44%
Receive CONTEMPORARY A-A Pay Overnight Rate -1 $88.96K 1.92%
CHINA MERCH BK-A $81.57K 1.76%
Receive CHINA YANGTZE-A Pay Overnight Rate -1.25 $75.10K 1.62%
WULIANGYE YIBI-A $70.17K 1.52%
PING AN INSURA-A $57.21K 1.24%
AGRICULTURAL-A $44.26K 0.96%
SHENZHEN MINDR-A $44.15K 0.95%
INDUSTRIAL BAN-A $43.41K 0.94%
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Allocation by sector

As of February 29, 2024 · N-PORT
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Portfolio moves

Nov 30, 2023 → Feb 29, 2024
Opened
3
Exited
51
Increased
1
Decreased
52
Unchanged
459

How many positions this fund opened, exited, grew, trimmed, or left unchanged between its two most recent N-PORT snapshots — net changes between point-in-time reports, not a trade log.

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Footnotes

  1. Net assets and holdings count as of February 29, 2024, from the fund's N-PORT filing.

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