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China Bias

Overweighting China

IntermediateLong termTOB 0.12%

Adds significant exposure to China (30%) beyond what a standard World ETF includes (~3%). Suitable for investors convinced of the long-term catch-up potential of Chinese markets.

Key facts

TOB0.12%on purchase and sale
Weighted average TER0.22%annual management fees
Securities (~)~2 000companies worldwide
Historical return~6.5% / yr2005–2025
Reynders taxNot applicable
DividendsAuto-reinvested

China underperformed over the past 20 years. This strategy carries significant country risk

Portfolio composition

IWDA70%Acc.

iShares Core MSCI World UCITS ETF (Acc)

ISIN: IE00B4L5Y983

TER 0.20%View on justETF↗
ICHN30%Acc.

iShares MSCI China UCITS ETF (Acc)

ISIN: IE00BQT38270

TER 0.28%View on justETF↗

Average yearly return

Index · EUR · gross · past performance
1 yr
+10.1%
3 yrs
+12.8%
5 yrs
+8.9%
10 yrs
+7.8%

Source: MSCI World (70%) + MSCI China (30%) blend (EUR, net div). Annualized returns to end-2025, EUR, gross of Belgian taxes (TOB, précompte mobilier, CGT) and ETF fees (TER). Past performance does not guarantee future results.

* Return calculated from weighted underlying indices. May differ slightly from actual ETF performance.

Why this strategy?

  • 1Deliberate overweighting of China: a classic world ETF allocates only ~3% to China. This strategy allocates 30% — 10× more — for investors convinced of the Chinese market catch-up.
  • 20.12% TOB on both ETFs: IWDA and ICHN are both subject to the reduced 0.12% TOB in Belgium.
  • 3100% accumulating funds: dividends automatically reinvested without withholding tax.
  • 4Exposure to the Chinese equity market via ICHN: the iShares MSCI China ETF covers H-shares (listed in Hong Kong) and accessible A-shares, giving direct exposure to listed Chinese companies.

Alternatives & comparisons

IWDA + EMIM

iShares MSCI World + iShares Core MSCI EM IMI

TER 0.20%TOB 0.12%Acc.
IE00B4L5Y983↗IE00BKM4GZ66↗

Advantages

  • +Diversified emerging exposure (India, Brazil, Taiwan + China)
  • +Less concentration on a single country
  • +0.12% TOB

Disadvantages

  • −China at only ~6% — much less than 30% here
  • −No fine control of the China weighting
Verdict : If you want emerging exposure without betting as much on China alone.
ICHN

iShares MSCI China UCITS ETF Acc

TER 0.28%TOB 0.12%Acc.
IE00BJ5JPG56↗

Advantages

  • +Pure exposure to China (100%)
  • +For investors with a strong China conviction

Disadvantages

  • −Extremely concentrated country risk
  • −High volatility, strong sensitivity to government regulation
  • −Marked underperformance over the past 5 years
Verdict : Only if you want 100% China exposure. Very high risk — to be reserved for a small fraction of the portfolio.

Tax disclaimer

0.12% TOB on purchase and sale. 10% capital gains tax on annual net gains exceeding the €10,000 exemption — only the excess above this threshold is taxed at 10%. The unused portion of the exemption can be carried forward (maximum €1,000 per year over 5 years), allowing to reach an exemption ceiling of €15,000 in a given year. Accumulating funds: no annual withholding tax on automatically reinvested dividends. Rates used are indicative — past performance does not guarantee future results.
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