Mirae’s Horizons ETFs Series introduces HK’s lowest-fee ETFs
17 June 2013
News, Hong Kong
By Asia Asset Management
The Horizons Exchange Traded Funds Series has announced the launch of two new ETFs with the lowest fees ever found in the Hong Kong market.
The following two ETFs will begin trading on the Hong Kong stock exchange today (June 17), substantially enhancing investors' potential returns from the China and Hong Kong growth story:
Horizons MSCI China ETF (Stock Code: 3040.HK)
Horizons Hang Seng High Dividend Yield ETF (Stock Code: 3110.HK)
The significantly lower fees of these two new ETFs will allow investors to reduce costs and enhance index tracking precision, thereby maximising total net returns over the long run," said Laura Lui, head of ETF at Mirae Asset Global Investments (Hong Kong) Limited (Mirae Asset HK), the manager and operator of the Horizons ETFs Series.
The annual management fee and total expense ratio (TER) of the Horizons MSCI China ETF are capped at 0.049% and 0.25%, respectively. These are much lower than similar ETFs in Hong Kong, which have management fees and TERs averaging 0.50% and 0.72%, respectively.
The annual management fee and TER of the Horizons Hang Seng High Dividend Yield ETF are capped at 0.18% and 0.38%, respectively, as compared to 0.55% and 0.88%, respectively, for similar ETFs in Hong Kong.
"These ETFs enable investors to gain exposure to two high-quality indices supported by solid fundamentals and attractive market valuations," Ms. Lui said. "The MSCI China Index is an established benchmark widely followed by fund managers worldwide, while the Hang Seng High Dividend Yield Index can offer higher dividend yield and lower volatility than the Hang Seng Index."
The MSCI China Index provides coverage of the large- and mid-cap segments of the Chinese market, including Chinese securities listed on the Hong Kong stock exchange and B-shares listed on the Shanghai and Shenzhen stock exchanges.
The Hang Seng High Dividend Yield Index comprises 50 constituents that aim to reflect the overall performance of high-yield securities (including stocks and REITs) listed in Hong Kong (excluding secondary listings, preferred shares, debt securities, mutual funds and derivatives).
Jung Ho Rhee, chief executive officer of Mirae Asset HK, added: "The Horizons ETFs Series family is now one of the largest in Hong Kong by the number of exchange traded fund offerings, and these new launches demonstrate our commitment to delivering unique value and convenience to investors. The rapid growth of Hong Kong's ETF market, one of the biggest in Asia, signifies investors' desire for better transparency and liquidity while being able to reap the potential long-term growth that quality companies in these markets offer."
The listing of the Horizons MSCI China ETF and Horizons Hang Seng High Dividend Yield ETF on the Hong Kong stock exchange broadens Mirae Asset HK's product range, bringing the total number of sub-funds to ten within the Horizons ETFs Series. The first eight sub-funds comprise the Horizons KOSPI 200 ETF, five Asian sector ETFs and two thematic (consumer) ETFs.
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