China-headquartered CSOP Asset Management has launched a new ETF in Singapore providing exposure to technology-related companies from South East Asia and India.
Ding Chen, Chief Executive Officer of CSOP Asset Management.
The CSOP iEdge Southeast Asia+ TECH Index ETF has been listed on Singapore Exchange in Singapore dollars (SQQ SP) and US dollars (SQU SP).
It has ongoing charges over a year of 1.41%.
According to CSOP, the importance of technology companies within the South East Asian economy has risen significantly in recent years, accounting for over 28% of the region’s exports at $490 billion.
The firm points to the region having become a global manufacturing hub due to its favourable demographics and competitive labour costs, allowing it to take on the latest round of international industrial relocation.
Additionally, in South East Asia and India, expanding internet adoption, fast GDP growth, and a rising middle-class population provides a potential client base for the growth of the digital economy. By 2030, South East Asia and India are expected to add 140 million new consumers, representing one-sixth of the global consumer class, with the middle-class population reaching 67% of the region’s total.
Methodology
The fund is linked to the iEdge Southeast Asia+ TECH Index which consists of the 30 largest technology or technology-enabled companies based in India, Singapore, Indonesia, Thailand, Vietnam, and Malaysia.
The index includes firms from technology-related sectors such as IT, software, consulting, car manufacturing, electronic components, manufacturing, retail, and media services.
Constituents are weighted by float-adjusted market capitalization subject to a single security cap of 10%.
Ding Chen, CEO of CSOP Asset Management, said: “This ETF presents an enticing opportunity for investors to capitalise on the rapid growth of Southeast Asia and India. The successful listing of the ETF will enhance Singapore’s ETF market and cater to the demands of discerning investors.”
Michael Syn, Senior Managing Director and Head of Equities at SGX Group, added, “Nowhere in the world is the pace of digital transformation faster than in South and South East Asia. This ETF provides investors exposure to some of the most innovative and fast-growing technology companies, enabling access to exciting growth opportunities in these markets and portfolio diversification benefits at the same time.”