- Global X Hang Seng ESG ETF incorporates ESG considerations to the Hang Seng Index and aims to deliver long-term outperformance
- The active ETFs enable access to high growth investment themes arising from green mobility and metaverse technology
March 21, 2022, Hong Kong – Mirae Asset Global Investments (Hong Kong) Limited (the “firm” or “Mirae Asset”) today announced the launch of three new ETFs: the Global X Hang Seng ESG ETF (3029), the Global X Metaverse Theme Active ETF (3006), and the Global X Electric Vehicle and Battery Active ETF (3139). Set to begin trading today on the Hong Kong Stock Exchange (“HKEx”), the Global X Hang Seng ESG ETF, along with the thematic active ETFs, will allow retail and institutional investors to incorporate ESG considerations into investment portfolios with convenience and cost efficiency, and unlock growth opportunities around electric vehicles and the evolution of the metaverse, respectively.
The Global X Hang Seng ESG ETF is the second Hong Kong-listed ESG and green ETF from Mirae Asset. It follows the award-winning1 Global X China Clean Energy ETF (2809) and demonstrates the firm’s commitment to offering more choices for sustainable investment to investors.
In terms of global ESG ETF fund flows, a growing number of investors are aware of the need to integrate sustainability considerations into investment portfolios. As a result, the total AUM of ESG ETF has increased at a CAGR of 32.6% globally from 2011 to 20212. This demand for greater corporate sustainability will continue to grow as governments and regulators around the world implement policies aimed at achieving carbon neutrality and social equality. Indexes incorporating sustainability factors also show a greater potential to outperform the general market, with the HSI ESG Enhanced Index achieving a three-year return (p.a) of 3.4% higher than that of the Hang Seng Index3.
Jung Ho RHEE, Chief Executive Officer of Mirae Asset Global Investments (Hong Kong) Limited, said: “We are delighted to launch the Global X Hang Seng ESG ETF, offering investors another product to meet the growing demand for ESG linked products. This is a testament to Mirae Asset’s continued commitment to providing investment solutions that promote sustainable development in the communities we invest in. Building on our track record of ESG products, we will continue to broaden options for investors to align their investments with their values.”
RHEE continues, “At the same time, we see green mobility and metaverse to be the key themes transforming the global economy. Providing investors access to these evolving, high-growth themes in an active ETF format will enable them to benefit from Mirae Asset’s strong research capability while positioning for long-term growth in a cost-efficient way.”
The Global X Hang Seng ESG ETF tracks the HSI ESG Enhanced Index to deliver broad exposure to the Hong Kong stock market with ESG considerations incorporated. In this ETF, ESG risks are mitigated by screening out Hang Seng Index constituents that score the highest ESG Risk Ratings, fail to comply with the United Nations Global Compact Principles, or are involved in controversial sectors such as thermal coal, tobacco, and controversial weapons. The weightings of the remaining constituents are then adjusted according to their sustainability profiles and there will be quarterly review and rebalancing.
The Global X Metaverse Theme Active ETF provides investors with globally diversified exposure to the evolving growth drivers of metaverse, with an all-inclusive management fee of 0.75%.4 The metaverse is the next stage in the evolution of the internet. In the metaverse, users can do everything from working, playing, transacting to socializing. The size of the global metaverse market is projected to reach US$800 billion by 2024.5 In a single trade, this ETF offers investors easy, cost-effective and transparent access to metaverse-related companies across the world, including those active in the fields of metaverse platforms, metaverse devices, blockchain and digital payments.
The Global X Electric Vehicle and Battery Active ETF seeks to offer investors opportunities in manufacturers of electric vehicles (EVs) and relevant components such as lithium batteries, and autonomous vehicle-related hardware and software. EVs are expected to become more mainstream in the market as technological advancements drive the improvement of EV costs and efficiency under the policy, infrastructural and R&D support from global governments. Tracking around 25 constituents globally and from China, this active option is a successful extension of the passive EV ETFs in the firm’s line-up, aiming to harness the momentum of the autonomous and electric vehicle industry.