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China electric vehicle ETF launched in Singapore

Nikko Asset Management and Straits Trading Company have partnered to offer the product.
Mans hand inserting charger plug into electric car in green environment background. New energy vehicle, NEV is being loaded with electricity power. Ecology, modern day cars

The NikkoAM-StraitsTrading MSCI China Electric Vehicles and Future Mobility ETF has listed on the Singapore Exchange (SGX).

The ETF tracks the MSCI China All Shares IMI Future Mobility Top 50 Index, which represents the 50 largest, listed Chinese companies that are expected to derive significant revenues from energy storage technologies, electric and autonomous vehicles, shared mobility and new transportation methods.

“Long-term, structural trends within China, fuelled by the powerful combination of technology and sustainability, can drive significant growth potential for this ETF,” Michael Syn, head of equities at SGX said in a press release.

The product has AUM of S$45.4m ($33.7m), and is the first SGX-listed ETF benchmarked to the fast-growing electric vehicles sector that Allied Market Research estimates will grow to $800bn by 2027. China is the largest electric vehicle market in the world in terms of production and sales.

Mirae Asset listed a Global X Autonomous and Electric Vehicles ETF in Hong Kong last month. It invests in global companies across the autonomous and electric vehicle supply chain, including EV components and autonomous vehicle hardware or software, including lithium batteries, sensors and semiconductors.

“Electric vehicles and future mobility solutions will change our world and lives indelibly, help make our future more sustainable, making this a compelling investment for investors globally to consider,” Eleanor Seet, president and head of Asia ex-Japan, Nikko Asset Management, added.

SGX now lists 36 ETFs across several asset classes and thematic sectors with total managed assets of around S$12.55bn, representing an increase of almost 50% year-on-year, according to SGX.

The electric vehicle ETF is the second one jointly developed by Nikko Asset Management with the Straits Trading Company. The partnership’s first ETF, NikkoAM-StraitsTrading Asia ex-Japan Reit ETF, was the world’s first Asia ex-Japan Reit ETF and is the largest Reit ETF listed in Singapore.

Part of the Mark Allen Group.