Posted inHong Kong

Mirae Asset launches thematic ETFs

The funds focus on new technologies and the entertainment sector in China and Asia.

The three new exchange-traded funds (ETF), Global X Asia Semiconductor ETF, Global X China E-commerce and Logistics ETF, and Global X China Games and Entertainment ETF made their debut on the Hong Kong stock exchange today, according to a statement by Mirae Asset Global Investments.

The Global X Asia Semiconductor ETF, which is the firm’s first regional thematic ETF, invests in Asia-based companies involved in the production and development of semiconductors and semiconductor equipment. The fund tracks the FactSet Asia Semiconductor Index.

“With long-term global demand for semiconductors set to increase, driven in part by the rise of innovative technologies such as artificial intelligence, internet of things, 5G and electric and autonomous vehicles, Asia is ideally positioned to benefit,” said Jung Ho Rhee, chief executive officer at Mirae Asset.

The Korean-based asset manager noted that three-quarters of the world’s semiconductors are now manufactured in Asia, and the region has some of the global leaders in chip production.

“In addition, the region possesses leading capabilities in other areas such as semiconductor equipment and materials as well as chip assembly, packaging and testing.”

Also listed today, the Global X China Games and Entertainment ETF tracks the FactSet China Games and Entertainment Index, which comprises Chinese companies focusing on online games, sports and performing arts entertainment, games and entertainment software, media content providers, and media production and broadcasting.

“With one of the world’s most sophisticated mobile payment infrastructures and a rapidly expanding 5G network, growth will mainly be driven by online forms of entertainment, such as online games, e-sports and video and music streaming platforms,” said Mirae Asset.

The third ETF, the Global X China E-commerce and Logistics ETF, targets opportunities amid the rapid rise of e-commerce and fast-growing smart logistics market in China, by tracking the FactSet China E-commerce and Logistics Index.

“E-commerce continues to grow at a rapid pace and the volume of online sales is set to surpass $3trn by the end of 2022. With highly innovative business models that combine online retail, social media, live streaming and group buying, China’s e-commerce platforms have revolutionized the retail industry,” said Mirae Asset.

“The country’s logistics companies are increasingly harnessing innovation and technology to optimize their operational efficiencies.”

The three funds are under the “Global-X” brand, a New York-based company which Mirae Asset bought in 2018.

All three ETFs are traded in Hong Kong dollars, but the base currency is in renminbi. Distributions on any shares will be in renminbi only. The management fee is 0.68% a year.

The initial public offering price for all three ETFs is at CNH 50 ($7.73), and participating dealers are Mirae Asset Securities (HK) and Haitong International Securities.

Mirae Asset now offers 21 ETFs in Hong Kong, with total assets under management of $2.67bn as of 22 July. It launched two China-focused ETFs, the Global X China Global Leaders ETF and the Global X China Innovator Active ETF, back in March.

Part of the Mark Allen Group.