Yuanta’s ESG Growth N listed on the OTC today

The new index investment product “Yuanta Listed ESG Growth N” (020027) was officially listed for trading on the 19th. The ETN issued by Yuanta Securities is a link to Taiwan’s “Selected OTC ESG Growth Return Index”. The number of issued units is 400,000,000 units, the issue price is 5 yuan per unit, and the issue period is five years. A brand new investment option for investors interested in ESG growth stocks.

Yuanta Securities pointed out that the compilation method of the “Selected OTC ESG Growth Return Index” linked to this product is to select ten stocks that have both ESG performance and high growth characteristics from the OTC stocks and compile them together into an index. Adopt the “Corporate Social Responsibility Evaluation Scores” of the Association for Sustainable Development, covering the three dimensions of environment (E), society (S) and corporate governance (G), to select companies with ESG performance up to the standard and consider revenue , Earnings, earnings before interest, taxes, depreciation and amortization (EBITDA), market value and other four major growth indicators, and after excluding foreign companies from coming to Taiwan as the first listed company, they are then weighted according to the descending order of the issued market value.

At present, the top six constituent stocks and their proportions in the weighting of the “Selected OTC ESG Growth Return Index” are: Global Crystal 20%, Stability 19%, World 14%, Zhongmei Crystal 14%, Phison 10%, and Hejing 4% , All are semiconductors, accounting for about 81% of the index; in addition, Yuantai, Jingde, Dajiang, and Lianya are all familiar high-growth stocks in the OTC industry. The composition of index stocks is reviewed and re-screened every June. The “Selected OTC ESG Growth Compensation Index” back-tested past performance shows that from June 17, 105 to March 31, 110, the total compensation was as high as 112%, which is an excellent performance.

“Yuanta Listed ESG Growth N” has the characteristics of low capital and no stock selection. It can track the rise and fall of a basket of listed stocks. The core value is to be close to the return of the “tracking index”. Except for investment fees, there is no tracking error. It can solve the problem that ordinary investors have less funds, unable to deploy high-priced hot stocks and have no time to watch stocks and stocks. Through the stock selection strategy with thematic index advantages, not only can limited funds be focused on strong stocks listed on the OTC, but also Spread the risk.

Yuanta Securities stated that “Yuanta Listed ESG Growth N” and ETFs are both passive investment products that track indexes. The trading method is the same as buying stocks. You can place an order with a securities account. The first time you buy, you need to sign the risk first. Trailer. At present, only about 5,000 yuan can easily grasp the performance of the above ten listed ESG growth stocks, and at the same time can participate in the sustainable investment of ESG and create positive influence.

News source: Business Times https://ctee.com.tw/news/stocks/490144.html 

Published on July 19, 2021

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