The NBCE ETF is an actively managed fund focused on mainland Chinese A-shares and stocks linked to the Chinese economy. It is designed to provide access to the broader Chinese equity market while incorporating the managers’ company selection and responsible-investment criteria.

It may suit investors seeking exposure to the long-term growth potential of mainland Chinese equities who understand the implications of its country concentration and active management approach.

This ETF is actively managed by Neuberger Berman.

The fund selects companies associated with the Chinese economy, with a focus on mainland Chinese A-shares, and evaluates financial health, growth prospects, corporate governance, and responsible-investment factors. Rather than mechanically replicating a specific index, the portfolio is constructed according to the managers’ judgment.

• Access to the mainland Chinese market and active security selection
• Daily portfolio disclosure and intraday trading structure

The fund has $15.5M in assets under management, with an annual expense ratio of 0.75%.

The NBCE ETF may have fewer assets under management than comparable funds, so investors should review the difference between the market price and net asset value, as well as bid-ask spreads, when buying or selling shares.

The performance of funds with exposure to Chinese equities is influenced by local economic trends, corporate earnings expectations, policy direction, and currency conditions. Because the NBCE ETF uses a concentrated active-management approach, its performance may diverge from the broader market, and volatility may arise during both rising and declining market conditions.

Fund flows may depend on investor sentiment toward mainland Chinese equities, access conditions for international investors, currency movements, and liquidity. Unlike large, broad emerging-market funds, it maintains a concentrated structure centered on a single country, making it important to assess the potential difference between the market price and net asset value, along with bid-ask conditions, before trading.

Active exposure to mainland Chinese equities is a distinguishing feature, but the fund’s country concentration and market-access structure may contribute to losses and volatility.

The FNDE ETF is a comparable fund that accesses emerging-market equities using a value-oriented approach, while the FRDM ETF provides emerging-market exposure based on a different set of country-selection criteria. The XSOE ETF seeks to limit exposure to state-owned enterprises, the PXH ETF pursues value-oriented emerging-market diversification, and the EMGF ETF aims to provide factor-based emerging-market exposure. Unlike the NBCE ETF, which concentrates on mainland Chinese equities, these funds have broader regional diversification. Investors should therefore compare differences in country concentration, management approach, fees, and trading conditions.

Before investing in the NBCE ETF, investors should assess how exposure to the Chinese equity market relates to their existing assets and whether the costs of active management and trading conditions suit their investment horizon. Its single-country concentration creates risk characteristics that differ from those of globally diversified equity funds.

The Chinese market may be affected by policy and regulatory changes, capital-movement restrictions, geopolitical factors, and currency fluctuations. When the trading hours for mainland Chinese equities differ from those of US-listed funds, investors should also consider the possibility of wider differences between net asset value and the market price.

The NBCE ETF may be worth considering for investors seeking actively selected exposure to mainland Chinese companies. However, those who prioritize broad emerging-market diversification or lower costs should compare the regional composition, selection criteria, expense ratios, and trading conditions of alternative funds.