Asset management company Reality Shares launched the world's first ETF, the basket of which consists of Chinese blockbuster companies. The firm said that its goal is to "“democratize the world’s best investing ideas". This is reported by CCN.
Reality Shares Nasdaq NexGen Economy China ETF (Nasdaq: BCNA) will focus on Chinese companies engaged in "development, research, support or use of blockchain." Companies will be evaluated in accordance with several key factors, including their role in the ecosystem of the detachment, the stage of product development, etc. Reality Shares argues that its methodology is based on a number of quantitative factors and is designed to "identify and evaluate the most highly rated companies" in the space of the blockbuster.
BCNA includes 31 components and will undergo changes to the basket on a semi-annual basis. CEO of Reality Shares Erik Erwin said that this approach will allow investors to freely access the blockchain companies in China. He also noted that the Asian country "is rapidly becoming the global epicenter of blockchain innovations," and the blockchain industry "provides incredibly exciting and long-term investment opportunities."
The company expects that its new investment fund will be able to demonstrate impressive performance due to the growth of the blockbuster industry in China. It notes that this market has several characteristics that may be attractive to investors, namely "the historical lack of correlation with the US market, the size of the securities market and strong credit quality." In addition, in 2017, Chinese companies were the leader in the number of issued patents in the field of blockchain.