The WisdomTree China ex-State-Owned Enterprises Fund (CXSE) is an exchange-traded fund designed to track the performance of Chinese companies while excluding state-owned enterprises (SOEs). The ETF is managed by WisdomTree and trades under the ticker CXSE on the Nasdaq.

Classified as a single-country international equity ETF, the fund invests in Chinese companies that are not majority-owned or controlled by the Chinese government. Its strategy is designed to provide exposure to China's private sector, emphasizing companies driven by innovation, consumer demand, technology, and domestic economic growth.

The ETF follows a passive management approach and seeks to replicate the performance of the WisdomTree China ex-State-Owned Enterprises Index, a benchmark composed of eligible large- and mid-cap Chinese companies while excluding state-controlled enterprises.

Diversification and sector exposure

CXSE provides exposure primarily associated with:

• Chinese private-sector companies.

• Technology.

• Consumer discretionary.

• Communication services.

• Consumer staples.

• Healthcare.

• E-commerce.

• Chinese equity market.

The portfolio includes companies from multiple industries, with significant exposure to businesses focused on domestic consumption, digital platforms, e-commerce, internet services, and technology.

The ETF's performance reflects the growth of China's private sector and may differ from broader China indexes that have substantial allocations to state-owned enterprises.

Structure and costs

CXSE shares trade on the secondary market on the NASDAQ during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF's market price with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. Dividends received from portfolio holdings may be distributed periodically to shareholders according to the fund's distribution policy.

History and evolution of the ETF

The WisdomTree China ex-State-Owned Enterprises Fund was launched in 2012 to provide investors with an alternative to traditional China equity indexes by reducing exposure to state-owned enterprises.

Since inception, the fund has reflected the growing role of privately owned businesses in China's economy, particularly across the technology, consumer, and services sectors.

In recent years, regulatory changes in China, developments in the technology sector, the recovery of domestic consumption, international trade tensions, and the pace of China's economic growth have continued to shape the performance of the companies represented in the ETF's portfolio.

Additional Information

WisdomTree China ex-State-Owned Enterprises Fund (United States) is an exchange-traded fund (ETF), with assets under management totaling $465.14 million.

Over the past 12 months, WisdomTree China ex-State-Owned Enterprises Fund recorded a return of -14.99%, with its price trading between $35.78 and $45.34 during the same period.

The ETF is traded under the ticker CXSE.