Samsung Asset Management (Hong Kong) Limited (SAMHK) said that it will launch Samsung NYSE Fang+ ETF, the first Fang+ ETF in Hong Kong. Currently comprised of 10 leading US-listed tech firms, the ETF will be officially listed on 25 May 2021 on the SEHK, according to a statement by the Korean money manager.
The ETF aims to track fast-growing US-listed technology stocks such as Facebook, Apple, Amazon, Alphabet, Netflix, Alibaba, Baidu and Tesla, at a lower cost. It will trade in the Hong Kong time zone with Hong Kong dollar and US dollar counters, providing a tool for Asia-based investors to diversify risk.
The underlying index increased by 91.09% for the year to 30 April 2021, according to Bloomberg data, outperforming the Hang Seng Index, S&P 500 and Nasdaq Index.
Samsung CSI China Dragon Internet ETF, an existing product of SAMHK launched in June 2018 that invests in new economy stocks, tracks about 30 of the largest globally-listed Chinese internet companies across the US, Hong Kong and China; the newly-launched Samsung NYSE Fang+ ETF focuses on the ten leading US-listed tech giants.
Both ETFs cover most of the listed tech giants in China and US, forming a complementary and product series, according to SAMHK.
Samsung Asset Management (Hong Kong) Limited holds licences from the Securities and Futures Commission (SFC) to conduct Type 4 (advising on securities) and Type 9 (asset management) regulated activities.
In October 2020, the firm listed Hong Kong’s first real estate investment trust (Reit) ETF, the Samsung S&P High Dividend APAC ex NZ Reits ETF.
The firm also runs the Hong Kong-listed Samsung S&P GSCI Crude Oil ER Futures ETF, and manages four leveraged and inverse products, all tracking Hang Seng-related indices, according to SFC records.
Tech tracking
Despite the volatility of global tech stocks this year, as some investors rotate from growth to values sectors, Hong Kong has been popular for new ETFs linked to tech indices.
China AMC listed a Hang Seng biotech ETF in March, Mirae Asset Global Investments received SFC approval to launch a China innovation active ETF in the same month, and CSOP Asset Management and Bosera Asset Management created ETFs linked to China’s SSE Science and Technology Innovation Board (STAR Market) 50 Index in February.
Most recently, six Chinese domestic mutual fund managers, including China Asset Management, Dacheng Fund Management and E Fund Management, gained approval from the China Securities Regulatory Commission last week to launch ETFs linked to the Hang Seng Tech Index, within the context of ETF Connect scheme agreed between China and Hong Kong regulators in August 2020.
