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CBONVanEck Vectors ChinaAMC China Bond ETF
Latest Market Updates*
- Chinese bonds currently offer attractive yields, with the 10-year China government bond yielding nearly 235 basis points above the 10-year U.S. Treasury yield.1
- CNY has been appreciating against the U.S. dollar since July, supported by relatively constrained monetary policy, growing FX reserves and a strong economic recovery compared to most other countries worldwide.
- Foreign interest in onshore bonds continues to increase, driven by their attractive yield and diversification potential, with inflows expected to continue as onshore bonds are gradually included in global bond indexes.
1Source: Bloomberg as of 12/17/2020.
Fund Description
The VanEck Vectors® ChinaAMC China Bond ETF (CBON®) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the ChinaBond China High Quality Bond Index (CHQU01TR), which is comprised of fixed-rate, Renminbi ("RMB")-denominated bonds issued in the People's Republic of China by Chinese credit, governmental and quasi-governmental (e.g., policy banks) issuers.
-
Fund Ticker
CBON -
Exchange
NYSE Arca -
ETF Structure
Physical -
Administrator
Van Eck Associates -
Custodian
State Street Bank and Trust Company -
Index Ticker
CHQU01TR -
Index Rebalancing
Monthly
as of 01/22/21
-
30-Day SEC Yield1
3.11% -
Total Net Assets
$64.7M -
Number of Holdings
75 -
Options
Expected -
Gross Expense Ratio2
3.53% -
Net Expense Ratio/TER2
0.50% -
Distribution Frequency
Monthly
Index Key Points
ChinaBond China High Quality Bond Index (CHQU01TR) comprises:
Fixed-rate, Renminbi (“RMB”)-denominated bonds issued in the People’s Republic of China (“China” or the “PRC”) by Chinese credit, governmental or quasi-governmental (e.g., policy banks) issuers (“RMB Bonds”). Chinese credit issuers are generally considered to be issuers of central enterprise bonds, local enterprise bonds, medium-term notes, corporate bonds and railway debt. Credit RMB Bonds must have at least one AAA rating by one of the Chinese local rating agencies recognized by the relevant authorities in the PRC to be included in the Index.
Index Weighting:
Constituents in the index are based on each constituent's relative market capitalization to the total market capitalization, subject to the following criteria: (a) 20% government bonds; (b) 30% policy bank bonds; and (c) 50% corporate bonds (with an issuer cap of 4.75%).
Index Provider:
China Central Depository & Clearing Co., Ltd.
Index Profile
-
Ticker
CHQU01TR -
Inception Date
11/05/2014 -
Rebalance Frequency
Monthly
Index Fundamentals4
as of 01/21/21
-
Yield to Maturity
3.60% -
Coupon
3.86% -
Modified Duration (yrs)
3.22 -
Years to Maturity
3.98
Top 10 Constituents (%) as of 12/31/20
to view
full data
Constituent Name |
Coupon
|
Maturity | Weighting (%) | |
---|---|---|---|---|
Export-Import Bank China |
3.280
|
02/11/2024
|
0.57 | |
China Development Bank |
3.480
|
01/08/2029
|
0.55 | |
China Development Bank |
4.040
|
07/06/2028
|
0.53 | |
China Development Bank |
3.650
|
05/21/2029
|
0.51 | |
China Development Bank |
4.040
|
04/10/2027
|
0.51 | |
China Development Bank |
3.090
|
06/18/2030
|
0.50 | |
China Development Bank |
3.450
|
09/20/2029
|
0.50 | |
China Development Bank |
3.070
|
03/10/2030
|
0.49 | |
China Development Bank |
3.180
|
04/05/2026
|
0.49 | |
China Government Bond |
2.860
|
07/16/2030
|
0.48 | |
Top 10 Total (%) | 5.13 |
Index Country Weightings (%) as of 12/31/20
-
Country
% of Net Assets -
■
CHINA
100.00
Index Sector Weightings (%) as of 12/31/20
-
Sector
% of Net Assets -
■
Financial
41.9 -
■
Government
25.4 -
■
Industrial
13.7 -
■
Utilities
6.3 -
■
Energy
4.0 -
■
Consumer, Non-cyclical
2.5 -
■
Consumer, Cyclical
2.5 -
■
Basic Materials
2.2 -
■
Diversified
1.1 -
■
Communications
0.3 -
■
OTHERS
0.2