Tracking HK Stock Exchange
Mirae Asset Global Investments announced on March 14 that it listed four leveraged and inverse exchange traded funds (ETFs), which track the Hang Seng Index (HSI) and Hang Seng China Enterprises Index (HSCEI), on the Hong Kong Stock Exchange.
With the listing, the company aims to provide more diverse investment opportunities to global investors. Also, investors will be able to trade various major foreign index investment products, which do not exist in Korea, even in the times for off-shift hours of the domestic securities market.
The HIS is a market capitalization-weighted index of the largest companies that trade on the Hong Kong Exchange, while the HSCEI is a market capitalization-weighted index of China enterprises listed in Hong Kong. Both leverage and inverse ETFs typically are designed to achieve 2x or -1x daily returns using derivative products including the futures.
“Mirae Asset Horizon HIS Leveraged EFT” and “Mirae Asset Horizon HIS Inberse EFT” seek to achieve 2x and -1x daily returns on the HIS index, respectively, while “Mirae Asset Horizon HSCEI Leveraged EFT” and “Mirae Asset Horizon HSCEI Inberse EFT” seek to achieve 2x and -1x daily returns on the HSCEI.
Mirae Asset Global Investments listed the KOSPI200 ETF on the Hong Kong Stock Exchange in 2011 for the first time in the domestic industry, and currently runs a total of 16 ETFs in Hong Kong, such as Hang Seng High Dividend Yield ETF, Global Consumer ETF and MSCI China ETF. The company operates 15.37 trillion won (US$13.37 billion) of ETFs in six countries, including Korea, Canada, Australia, U.S. and Columbia, as of the end of February.
Mirae Asset now manages 218 ETFs under its three brands – Horizons in the U.S., Canada, Hong Kong and Columbia, TIGER in Korea and BetaShares in Australia. In particular, the company’s total net assets increased by more than 3 trillion won (US$2.61 billion) last year. Both the net assets and the number of ETFs more than doubled from those of 2011 when the company first entered the global market, showing the rapid growth.
Lee Tae-yong, head of the Global ETF Business at Mirae Asset Global Investments, said, “Mirae Asset’s global ETF business listed the leveraged and inverse ETFs, which track S&P500 and Topix, in Hong Kong last year as well, leading the market with high trading volumes. We are implementing various strategies to grow the local EFT business this year, and the listing of the leveraged and inverse ETFs on the Hong Kong Stock Exchange is also part of the plan.