Top 3 Markets:

1. Mainland China: approx. 90%
2. Hong Kong: approx. 5%
3. USA: approx. 3%

Sector Distribution:

• Financial Sector: approx. 40%
• Technology: approx. 20%
• Consumer Goods: approx. 15%
• Industrials: approx. 10%
• Healthcare: approx. 8%
• Energy: approx. 7%

The iShares FTSE A50 China Index ETF is heavily focused on the Chinese market, as reflected in the high weighting of Mainland China. The financial sector dominates the sector distribution, which is typical for ETFs investing in China, as many large Chinese banks and financial institutions are represented in the index.

Technology stocks have gained importance in recent years, attributed to the growth and innovation of Chinese technology companies. Consumer goods and industrials follow suit, as they are also significant sectors in the Chinese economy.

iShares Asia Trust - iShares FTSE A50 China Index ETF (SEHK:2823) is an exchange-traded fund (ETF) and not a company that produces physical products.

This ETF is managed by iShares, a brand of BlackRock, and aims to track the performance of the FTSE China A50 Index. The index consists of the 50 largest companies listed on the Shanghai and Shenzhen stock exchanges.

Being a financial product, there is no physical production or manufacturing facilities involved. Instead, the ETF invests in stocks of companies based in China that offer their products or services there.

Current Strategy: Focus on Diversification and Market Presence

The iShares Asia Trust - iShares FTSE A50 China Index ETF pursues a strategy aimed at promoting growth through broad diversification within the Chinese markets.

The ETF invests in the 50 largest companies listed on the Shanghai Stock Exchange and the Shenzhen Stock Exchange. This strategy allows investors to benefit from China's economic development by gaining access to a variety of sectors, including finance, technology, and consumer goods.

In the future, the ETF plans to strengthen its market presence by expanding its investment universe to take advantage of the ongoing opening of the Chinese capital markets. This could be achieved by adding more companies or adjusting the weighting within the index to respond to economic trends and regulatory changes.

Commodities/Materials: No specific commodities or materials

The iShares Asia Trust - iShares FTSE A50 China Index ETF (SEHK:2823) is an exchange-traded fund (ETF) that tracks the performance of the FTSE China A50 Index. This index includes the 50 largest companies listed on the Shanghai and Shenzhen stock exchanges.

As a financial product, the ETF itself does not import any commodities or materials. Instead, it invests in stocks of companies operating in various sectors, including finance, consumer goods, industry, and more.

The commodities and materials imported by the companies included in the ETF vary depending on the industry and specific business model of each company. For example, companies in the industrial sector may import commodities such as steel or copper, while technology companies may source semiconductors or electronic components. The countries of origin of these commodities depend on the global trade relationships and supply chains of the respective companies.

Current market share: 12% (2026, estimated)
Assets under management (AUM): 10 billion USD (2025)
Expense ratio: 0.99% (2025)

The iShares FTSE A50 China Index ETF provides investors with access to the 50 largest companies in China listed on the Shanghai and Shenzhen stock exchanges. The ETF's competitive advantage lies in its broad diversification and focus on China's largest and most liquid stocks, making it an attractive option for investors looking to invest in the Chinese market.

Another advantage is the relatively low expense ratio compared to actively managed funds, making the ETF appealing to cost-conscious investors. Its high liquidity and significant AUM also strengthen its position in the market.

However, the ETF faces competition from other major providers of China ETFs pursuing similar index strategies. The competitive advantage could be further enhanced by the fund manager's ability to keep costs low while ensuring high tracking accuracy.

Institutional Investor Share: Estimated at 65% (2026)

Insider Buys/Sells: No significant insider transactions reported (2026)

The institutional investor share in the iShares FTSE A50 China Index ETF is estimated to be around 65%. This high participation reflects the interest of institutional investors who want to invest in the Chinese market, especially in the largest companies of the FTSE A50 Index.

Regarding insider transactions, there have been no significant buys or sells reported in the recent reporting periods. This is typical for ETFs as they are passively managed funds and do not have direct company insiders who could buy or sell stocks.

Market share iShares FTSE A50 China Index ETF: Estimated around 10% (2026)

Top competitors and their market shares:

1. Vanguard FTSE China Index ETF: around 12%
2. SPDR FTSE Greater China ETF: around 8%
3. HSBC MSCI China ETF: around 7%
4. Invesco China Technology ETF: around 6%
5. Xtrackers Harvest CSI 300 China A-Shares ETF: around 5%

The iShares FTSE A50 China Index ETF holds a significant market share in the China ETF sector, attributed to its strong brand presence and wide acceptance among investors. The ETF offers high liquidity and broad diversification, making it attractive to many investors.

Compared to its competitors, the iShares ETF has a moderate moat, primarily strengthened by its established brand and BlackRock's support. However, some competitors, like the Vanguard FTSE China Index ETF, may have a stronger moat due to their cost-effective structure and specific investment strategies targeting certain sectors or market segments.

Overall, competition in this sector is intense, and while the iShares ETF maintains a solid market share, continuous innovation and adjustments to market trends are necessary to preserve or expand the moat.

Economic Growth in China: 4.8% (2025, estimate) FTSE A50 Index Performance: 6.2% (2025, estimate) Inflation Rate in China: 2.3% (2025, estimate)

The iShares FTSE A50 China Index ETF provides access to the 50 largest companies in China listed on the Shanghai and Shenzhen stock exchanges. These companies are often market leaders in their respective industries and benefit from China's economic development.

In 2025, the Chinese economy showed solid growth of an estimated 4.8%, attributed to a recovery from pandemic-related restrictions and sustained demand in key industries. The FTSE A50 Index, reflecting the performance of these large companies, recorded an estimated return of 6.2% in 2025.

The inflation rate in China remained relatively moderate at 2.3%, creating a positive environment for investments in Chinese stocks. Given these macroeconomic factors, the iShares FTSE A50 China Index ETF could present an attractive investment opportunity, especially for investors looking to participate in China's long-term growth story.

However, it is important to consider the geopolitical risks and regulatory uncertainties associated with investing in Chinese stocks. Therefore, a careful analysis of individual risk tolerance and diversification strategy is advisable.

Dividend Yield: 2.5% (estimated for 2026)

The iShares Asia Trust - iShares FTSE A50 China Index ETF (SEHK:2823) is known for distributing dividends. The dividend yield typically ranges from 2% to 3%, depending on the performance of the companies included in the index.

The reliability of the distribution is heavily dependent on the economic situation in China and the performance of the 50 largest companies represented in the FTSE China A50 Index. Historically, the ETF has regularly paid dividends, but geopolitical tensions and economic fluctuations in China can influence the dividend policy.

Investors should keep an eye on economic developments in China and the performance of the companies included in the index to better assess future dividend stability.