ETF Showdown: Comparing CONY and MSTY for Your Investment Strategy

Sunday 16th of March 2025 13:00:00

Cony vs. MSTY: How to Compare These ETFs

Investors seeking exposure to the Chinese market have a plethora of exchange-traded funds (ETFs) to choose from. Two popular options are the VanEck China ETF (Cony) and the KraneShares MSCI All China Index ETF (MSTY). While both funds aim to track the performance of Chinese stocks, there are key differences between them that investors should consider.

Cony: A Broad-Based China ETF

Cony, launched in 2019, tracks the VanEck China ETF Index, which is designed to provide broad exposure to the Chinese market. The fund holds over 300 stocks, with a focus on large-cap companies across various sectors, including technology, financials, and consumer goods. Cony's index is market-capitalization-weighted, meaning that larger companies have a greater influence on the fund's performance.

MSTY: A More Niche, MSCI-Based ETF

MSTY, launched in 2011, tracks the MSCI All China Index, which is a more targeted benchmark that focuses on Chinese companies listed in Hong Kong, Shanghai, and Shenzhen. The fund holds around 400 stocks, with a bias towards larger companies and a focus on the consumer, technology, and financial sectors. MSTY's index is also market-capitalization-weighted, but it has a higher concentration in the technology sector.

Key Differences

So, what sets Cony and MSTY apart? Here are a few key differences:

  • Sector exposure: While both funds have a significant allocation to technology, MSTY has a higher concentration in this sector, with over 25% of its portfolio dedicated to tech stocks. Cony, on the other hand, has a more diversified sector allocation.
  • Market capitalization: Cony has a higher allocation to mid-cap and small-cap stocks, while MSTY has a greater focus on large-cap companies.
  • Index methodology: Cony tracks the VanEck China ETF Index, which is a proprietary benchmark, while MSTY tracks the MSCI All China Index, which is a widely followed and widely traded benchmark.
  • Fees: Cony has a net expense ratio of 0.52%, while MSTY has a net expense ratio of 0.67%.

Conclusion

In conclusion, while both Cony and MSTY offer exposure to the Chinese market, they have distinct differences in terms of sector exposure, market capitalization, index methodology, and fees. Investors seeking broad exposure to the Chinese market may prefer Cony, while those looking for a more targeted approach with a focus on technology and consumer stocks may prefer MSTY. As with any investment decision, it's essential to carefully consider your individual goals, risk tolerance, and investment horizon before choosing an ETF.