UBS Solactive China Technology UCITS ETF USD acc

What this fund is

UBS Solactive China Technology UCITS ETF USD acc is an exchange-traded fund (ETF) from UBS, traded under the ticker CHTE (ISIN LU2265794276). One trade buys a whole basket of holdings, so your money is spread out instead of riding on a single company. In plain terms it is about owning small slices of companies, so you share in their growth when they do well — and their falls when they don't, spread across its target market. Rather than a manager picking stocks, it simply replicates the Solactive China Technology index — the passive, low-cost approach, and its largest holdings include TENCENT HOLDINGS LTD, ALIBABA GROUP HOLDING LTD and XIAOMI CORP-CLASS B. By geography it is weighted towards ~44.4% Cayman Islands, ~9.7% China and ~2.4% Hong Kong.

Its heaviest sectors are ~20.6% Consumer Discretionary and ~19.7% Communication Services. Investors often use a broad fund like this as a long-term 'core' holding — a single building block that covers much of a global portfolio in one trade. Its ongoing charge (TER) is 0.47% a year — about €47 a year on a €10,000 holding, taken automatically from the fund. It is an accumulating share class: dividends are rolled straight back in, compounding your returns rather than landing in your account as cash. It holds the underlying investments directly (physical replication); it is domiciled in Luxembourg and UCITS-regulated, a European standard built to protect everyday investors and trades in USD.

Its price has swung about 33.7% over the past year, which describes how much its price tends to move rather than whether it is good. It launched in 2021. As with any investment, its value can go down as well as up, and past performance is not a guide to future results. (Fund data sourced from UBS.)