Korean issuers trot out Hang Seng TECH ETFs

Dec 16th, 2020 | By | Category: Equities

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A quartet of South Korean issuers have introduced ETFs based on the in-demand Hang Seng TECH Index.

China Korea ETFs

The ETFs, listed on Korea Exchange, provide exposure to China’s fast-growing technology sector.

The four funds have listed on Korea Exchange and been brought to market by KB Asset Management, Samsung Asset Management, Mirae Asset Global Investments, and Korea Investment Management

They come with expense ratios ranging from 0.14% to 0.25%.

The target Hang Seng TECH Index reflects the performance of 30 of the largest and fastest-growing Greater China technology companies listed on the Stock Exchange of Hong Kong.

Specifically, it consists of P-Chips, Red-Chips, and H-Shares of companies that have high business exposure to the internet, fintech, cloud computing, e-commerce, and digital technology themes.

Companies must also be “technology-enabled” (i.e. operate primarily on an internet or mobile platform) or have an R&D expenses-to-revenue ratio that is greater than or equal to 5%, or revenue growth that is greater than or equal to 10%.

The 30 largest stocks as ranked by market capitalization that meet these criteria are selected to form the index. Constituents are weighted by free-float market capitalization, subject to a cap of 8% on any individual stock.

The index was unveiled in July this year by Hang Seng Indexes Company and has proved popular with asset managers and investors. It currently underlies four ETFs and two inverse & leveraged ETPs in Hong Kong, as well as ETFs listed in Singapore, London, and Frankfurt, with others known to be in the pipeline.

The four ETFs listed on Korea Exchange are as follows:

KBSTAR China Hang Seng TECH ETF (371150 KS) (KB Asset Management)
Expense ratio 0.14%.

KODEX China Hang Seng TECH (372330 KS) (Samsung Asset Management)
Expense ratio 0.18%.

TIGER China Hang Seng TECH ETF (371160 KS) (Mirae Asset Global Investments)
Expense ratio 0.23%.

KINDEX China Hang Seng TECH ETF (371870 KS) (Korea Investment Management)
Expense ratio 0.25%.

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