After the announcement of four Solactive Indices being featured in the top-ten ETF launches in the US this year, Solactive announces yet another top ranking, this time in the Hong Kong ETF/ETP market
Timo Pfeiffer, Chief Markets Officer at Solactive
where the company was able to also place four indices amongst the top-ten product launches (measured by AuM inflows) year to date. 1
Globally interlinking markets render fast-growing Chinese companies as one of the winners of progressing globalization. Additionally, China’s expanding middle class continues to drive domestic consumption forward. Together with other disruptive macro-level trends, these developments set the foundation for the release of three distinct Global X-branded thematic ETFs by Mirae Asset Global Investments (HK) Limited, all of which rank in the aforementioned top-ten Hong Kong ETF/ETP launches of 2020.
With more than USD 73 million in assets under management, the Global X China Clean Energy ETF invests in companies with long-term exposure to the growing Chinese renewables sector. According to statistics from the International Energy Agency (IEA), China is the world leader in the production of renewable power from wind as well as solar photovoltaics2. The ETF tracks the Solactive China Clean Energy Index.
The second top-ten ETF is the Global X China Consumer Brand ETF, which houses Chinese companies from industries where the brand name is of significant importance for the consumer. It utilizes the Solactive China Consumer Brand Index as its underlying. To capture the fast-changing consumer trends in China, the selection of index components is dependent on relevant short-term revenue growth. The Global X China Consumer Brand ETF gathered more than USD 81 million in assets under management.
The third Global X ETF positions on rank two of the overall list, amassing more than USD 229 million so far. The success of the Global X China Electric Vehicle ETF stems from the conviction that the Chinese Electric Vehicle (EV) market, already the largest EV market globally3, continues to grow significantly. Investors engaging in the new ETF tracking the Solactive China Electric Vehicle Index gain access to this underlying theme.
In addition to the above-mentioned ETFs, Solactive provides the underlying for the CSOP Gold Futures Daily (2x) Leveraged Product, which was the first leveraged commodity product listed in Hong Kong. This ETP aims to provide investors with a return of twice (2x) the daily performance of the Solactive Gold 1-Day Rolling Futures Index and has accumulated more than USD 121 million to date. This leveraged product provides another efficient tool for investors to tactically diversify or hedge their investments.
“At the end of 2018, we completed the setup of our Hong Kong office, which has been, to date, our second international entity. We could not have imagined that, merely two years later, four of our indices would be featured in the most successful Hong Kong ETF and ETP launches in 2020”, comments Timo Pfeiffer, Chief Markets Officer at Solactive. “As the passive investment sector continues to gain traction in the APAC region, we look forward to grow together with the Asian ETF and ETP market, and contribute our indexing expertise to investors in the region.”
As of September 27th, the four aforementioned products gathered more than USD half a billion in assets combined.
|ETF Name||AuM (in USD)4||Underlying Index|
|CSOP Hang Seng TECH Index ETF||526,666,035||Hang Seng TECH Index|
|Global X China Electric Vehicle ETF||229,118,686||Solactive China Electric Vehicle Index (net total return)|
|CSOP CSI 300 Index Daily (-1x) Inverse Product||177,779,506||CSI 300 Index|
|iShares Hang Seng TECH ETF||124,102,089||Hang Seng TECH Index (net total return version)|
|CSOP Gold Futures Daily (2x) Leveraged Product||121,589,078||Solactive Gold 1-Day Rolling Futures Index|
|CSOP CSI 500 ETF||118,309,761||CSI 500 Index|
|Global X China Semiconductor ETF||107,752,019||FactSet China Semiconductor Index (net total return)|
|CSOP CSI 300 Index Daily (2x) Leveraged Product||95,295,752||CSI 300 Index|
|Global X China Consumer Brand ETF||81,019,839||Solactive China Consumer Brand Index (net total return)|
|Global X China Clean Energy ETF||73,337,148||Solactive China Clean Energy Index (net total return)|
1 Sources: HKEX, ETF/ETP issuer websites; as of 27/09/2020
4 Sources: HKEX, ETF/ETP issuer websites; as of 27/09/2020