Cheap China, Contrarian America

China

China gets more cheap core ETFs

China is getting two new cheap core ETFs that track the Shanghai composite index – known as the SSE. Another tracks the CSI 300 index, China’s most popular benchmark.

Horizon Asset Management is listing the new SSE tracker. The fund will have a nice and short punchy name (in English at least): the Horizon SSE ETF (510200). While the Bank of Ningbo is listing the CSI tracker.

Both funds are yet to be listed and we can’t find anything about them yet on their providers websites.  

USA

Robo Global brings its artificial intelligence ETF to the US

Index company Robo Global is teaming up with white labeller Exchange Traded Concepts to list a new ETF that invests in artificial intelligence.

The ROBO Global Artificial Intelligence ETF (THNQ) will work much the same as the London-listed L&G Artificial Intelligence UCITS ETF (AIAG). It will invest in global companies with market leadership and purity of revenue from AI.  

As AI is a newish field with no universal definition, the fund will look at investments as well as revenue. Companies that invest in AI will also potentially be included. Final decisions on investments will be guided by Robo Global’s index committee.

The fund takes a modified equal weight approach in order to stop the mega tech companies – which are include AI in their R&D spend – totally hogging the cake.

Actively contrarian ETF

Californian mutual fund provider Redwood is entering the ETF market under a new sub-brand called LeaderShares.

As part of its opening gambit the company is listing an actively managed contrarian ETF that buys losers and sells winners. The LeaderShares Equity Skew ETF (SQEW) will buy losing factors, losing companies, and losing asset classes “based on quantitative research” the prospectus says.

As the fund is actively managed, not much information about how it picks winners (meaning losers) is given. The prospectus says only that the fund looks at skewness.

The fund charges 0.75%.