The It Now China A50 ETF (SILK11) is a Brazilian exchange-traded fund designed to provide exposure to the Chinese equity market through investments linked to the MSCI China A50 Index. The ETF is managed by Itaú Asset Management and trades under the ticker SILK11 on the B3.

Classified as an international equity ETF, the fund follows a passive management strategy. Its objective is to provide investors with exposure to large-cap Chinese companies through investments in an offshore ETF that tracks the performance of the MSCI China A50 Index, offering access to companies listed in mainland China.

Composition / Exposure profile

SILK11 provides exposure primarily associated with:

• Large-cap Chinese companies.

• Mainland China equity markets.

• Chinese financial institutions.

• Consumer-sector businesses.

• Industrial companies.

• Technology-related companies.

• Asian equity-market exposure.

• Chinese yuan (CNY) currency exposure.

The underlying portfolio includes companies that play a significant role in the Chinese economy, providing diversified exposure across sectors such as finance, technology, consumer goods, and industrial activities.

Performance is generally influenced by China's economic growth, government policies, monetary conditions, corporate profitability, and broader developments affecting Asian and global financial markets.

Structure and costs

SILK11 shares trade on the secondary market on the B3 during regular trading hours. Share creation and redemption occur through authorized participants, helping to align the ETF’s market price with its net asset value (NAV).

The fund charges a total annual fee of approximately 0.40%, including costs associated with both the local structure and the underlying offshore ETF. The ETF does not apply a performance fee.

Subscription occurs on a D+0 basis, while settlement takes place on D+2. SILK11 does not provide recurring income distributions, as dividends and other proceeds received from underlying holdings are reinvested into the portfolio.

History and evolution of the ETF

The It Now China A50 ETF was created to facilitate access to the Chinese equity market through the Brazilian stock exchange, expanding international diversification opportunities for local investors.

Since inception, the fund has become part of the growing international ETF segment in Brazil, providing exposure to one of the world's largest economies through a single exchange-traded investment vehicle.

In recent periods, SILK11 has reflected fluctuations in the Chinese stock market, influenced by macroeconomic conditions, government policies, regulatory developments, international trade dynamics, and broader trends affecting global financial markets.

Additional Information

It Now China A50 ETF (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $23.29 million.

Over the past 12 months, It Now China A50 ETF recorded a return of -, with its price trading between $49.94 and $68.50 during the same period.

The ETF is traded under the ticker SILK11.