CoreValues Alpha Greater China Growth ETF (CGRO) seeks to provide exposure to growth-oriented companies in Greater China, including mainland China, Hong Kong, and Taiwan markets. This geographic-focused equity ETF targets companies with strong earnings growth potential and value characteristics across the world's second-largest economy.
How It Works
CGRO employs an active management approach combining growth and value screening methodologies to select stocks from Greater China markets. The fund evaluates companies based on earnings growth rates, revenue expansion, and valuation metrics like price-to-earnings and price-to-book ratios. Portfolio construction focuses on identifying undervalued growth companies with sustainable competitive advantages. Currency exposure remains unhedged, providing direct exposure to Chinese yuan, Hong Kong dollar, and Taiwan dollar fluctuations.
Key Features
- Launched in October 2023, offering early access to a unique growth-value hybrid strategy in Greater China markets
- Zero expense ratio structure eliminates management fees, potentially saving investors significant costs compared to typical China-focused ETFs
- Active management approach allows tactical positioning across mainland China A-shares, Hong Kong H-shares, and Taiwan technology leaders
Risks
- This ETF can lose significant value during Chinese regulatory crackdowns or geopolitical tensions, potentially declining 40-60% during severe China-specific crises
- Currency fluctuations against the U.S. dollar can amplify losses, as yuan, Hong Kong dollar, and Taiwan dollar weakness reduces returns
- Greater China markets exhibit high volatility with frequent 20-30% swings due to government policy changes and economic uncertainty
Who Should Own This
Best suited as a satellite holding (5-15% of equity allocation) for aggressive growth investors with 3+ year time horizons and high risk tolerance. Appropriate for investors seeking geographic diversification beyond U.S. markets and comfortable with emerging market volatility. Given the fund's recent inception, suitable for investors willing to invest in unproven strategies.