Janus Henderson Investors has launched an actively managed China equity ETF, seeking to capitalise on attractive valuations and widening differences in performance between Chinese companies.
The Janus Henderson China Equity Active Core UCITS ETF (JCHN) began trading on the London Stock Exchange on 4 November and has a total expense ratio (TER) of 0.39%. It aims to outperform the MSCI China 10/40 Index over the long term.
The ETF invests in approximately 100–150 Chinese companies, combining fundamental company research with quantitative portfolio construction. This means the managers identify businesses they consider attractive, while a systematic model helps determine position sizes and control risk. The strategy looks for companies benefiting from structural growth themes, alongside undervalued businesses with improving shareholder returns.
Unlike ETFs restricted to mainland-listed Chinese shares, JCHN can invest across mainland China, Hong Kong and overseas listings. It is managed by Victoria Mio, Janus Henderson’s head of Greater China equities, alongside Benjamin Wang and Zoey Zhu.
Our view
David Batchelor, senior analyst at QuotedData, said: “China’s stock market encompasses everything from established state-controlled businesses to innovative technology companies, and their prospects can differ substantially. This creates opportunities for managers to identify winners and avoid weaker companies, rather than simply following an index. Janus Henderson’s combination of fundamental research and quantitative portfolio construction is designed to capture these opportunities while limiting excessive bets on individual stocks or sectors. The 0.39% fee also looks competitive against other active China offerings, including JPMorgan’s China A Research Enhanced ETF (JREC), which charges 0.40%, although the latter concentrates exclusively on mainland A-shares”.
