Vanguard launches three new Hong Kong ETFs

16 June 2014   Category: News, Asia, Global, Hong Kong   By Daniel Shane

Mutual fund giant Vanguard has launched three new ETF products on the Hong Kong Stock Exchange, offering exposure to developed equity markets in Europe and Japan, as well as higher-yielding stocks across Asia-Pacific.

The new ETFs began trading on Friday, and bring the low-cost provider’s total number of ETF products in Hong Kong to four.

The Vanguard FTSE Developed Europe Index ETF will provide investors with exposure to developed European equity markets, while the Vanguard FTSE Japan Index ETF is the first physical, market cap-weighted ETF in Hong Kong to provide exposure to Japanese stocks. The third product, the Vanguard FTSE Asia ex Japan High Dividend Yield Index ETF, is the first physical, market cap-weighted ETF to cover high-yielding stocks in the region.

“We are developing core building block ETFs to help long-term investors assemble globally diversified portfolios,” said Shelly Painter, regional managing director, Asia, Vanguard.

“Importantly these products give Hong Kong investors more choices and break new ground in the market by being the first physical-backed ETFs offering exposure to the developed European markets and to Japan.”

Vanguard’s first ETF on the Hong Kong market launched in May last year, and covers stocks in 11 developed markets across Asia excluding Japan.

The US-based firm is one the world’s largest mutual fund managers, with AUM of more than US$2.8 trillion globally.