The Global X Asia Pacific High Dividend Yield ETF tracks the Solactive Asia Pacific High Dividend Yield Index, constituting 40 of the highest dividend-yielding securities listed in the region.
“Asia Pacific has consistently offered the highest levels of dividend yields compared to other regions around the world, driven by the strong fundamentals and healthy cash balances of its corporates,” said Jung Ho Rhee, chief executive officer of Mirae Asset.
“The Global X Asia Pacific High Dividend Yield ETF aims to tap into the vast income opportunity presented by this region at a time when investors urgently need to protect their portfolios against rising inflation,” he added.
The index factsheet shows that the constituent stocks are mostly in Taiwan (32.7%) and Australia (29.6%), while companies in both Japan and Korea each comprise 13.8% in the index.
The top three holdings are all energy companies in Australia: Whitehaven Coal (3.38%); New Hope Corporation (3.19%); and Woodside Energy Group (3.16%).
The index is reviewed and rebalanced on a quarterly basis, with the fund aiming to pay out dividends quarterly – in March, June, September and December.
Handling higher yields
Mirae Asset noted that as central banks continue to tighten monetary policy to control inflation, bond yields have been rising at a rapid pace.
In a rising yield environment, the firm believes Asian high-yielding stocks can not only deliver high levels of income, but also outperform broad market indexes.
The Solactive Asia Pacific High Dividend Yield Index outperformed the MSCI AC Asia Pacific Index by 7.3% on a cumulative basis over the previous three periods of rising yields.
In terms of dividend yield, the Solactive Asia Pacific High Dividend Yield Index delivered 8.0% as of end of June, which is more than double the 3.2% offered by the Hang Seng Index.
In March, Mirae Asset launched three ETFs in Hong Kong, to both retail and institutional investors, namely: the Global X Hang Seng ESG ETF; the Global X Metaverse Theme Active ETF; and the Global X Electric Vehicle and Battery Active ETF.
Mirae Asset has over $204bn of AUM and offers 452 ETFs worldwide, according to the firm.