CSOP AM delists commodity ETF

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In Hong Kong, commodity-focused ETFs have gathered too few assets.

CSOP Asset Management in Hong Kong has decided to delist its CSOP WTI Oil Annual Roll December Futures ER ETF, according to a statement from the firm.

The last trading day of the product will be 5 August.

The product is a futures-based commodity ETF and invests directly in the December month West Texas Intermediate (WTI) crude oil futures contracts traded on the New York Mercantile Exchange, according to the firm’s website.

The firm said in the statement that among other factors, the small asset value of the fund was one of the reasons why it decided to delist the product.

Launched in 2016, the fund has only $1.9m in assets.

FSA sought more information from CSOP AM, but the firm was not able to reply in time for publication.

Out of the around 110 ETFs listed in Hong Kong, only six of them are commodity-focused, according to data from Hong Kong Exchange. All of them have assets below $100m, with the exception of Value Partners’ Gold ETF.

ETF

Manager

AUM ($m)

SPDR Gold Trust*

SSGA

data not available on Hong Kong Exchange

Value Gold ETF

Value Partners

113

Mirae Asset Horizons S&P Crude Oil Futures Enhanced ER ETF

Mirae Asset Global Investments (Hong Kong)

4.44

CSOP WTI Oil Annual Roll December Futures ER ETF

CSOP Asset Management

1.9

Samsung S&P GSCI Crude Oil ER Futures ETF

Samsung Asset Management (Hong Kong)

20.9

Hang Seng RMB Gold ETF

Hang Seng Investment Management

7.9

Source: Hong Kong Exchange. US dollars. Note: *The SPDR Gold ETF is also listed in Mexico, Singapore and in Tokyo and has total assets of $36bn, according to the firm’s website.

 

A number of ETFs in Hong Kong have been delisted for failure to gather satisfactory assets, although the majority of them were China A-share focused.

CSOP AM manages 14 other ETFs, five of them are leveraged and inverse (L&I) products.

In May, the firm launched Hong Kong’s first inverse product that has a -2x multiplier, the CSOP Hang Seng Index Daily (-2x) Inverse Product, after the Securities and Futures Commission relaxed rules on inverse products earlier this year.

More recently, the firm turned its Hang Seng China Enterprise Index Daily (-1x) Inverse Product to have a -2x multiplier.

 

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