Mirae Asset debuts ESG ETF

The product is among three Mirae ETFs listed in Hong Kong this week

The South Korea asset manager has launched three ETFs, namely the Global X Hang Seng ESG ETF, the Global X Metaverse Theme Active ETF, and the Global X Electric Vehicle and Battery Active ETF, to both retail and institutional investors.

The Global X Hang Seng ESG ETF is the second Hong Kong-listed ESG and green ETF from Mirae Asset, after the launch of the China Clean Energy ETF in 2020.

“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 2021,” said Mirae Asset in an announcement.

The asset manager believes the 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.

The HK$22.1m ($2.82m) 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.

The fund allocates its assets to 58 securities, including those in the financial sector and the technology sector.

Its largest holding is 8.62% in Hong Kong Exchanges and Clearing Limited, followed by 8.44% in AIA group and 8.15% in HSBC holdings.

The ETF negatively screens out stocks that are ranked with 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 certain weapons.

The weightings will be reviewed and rebalanced quarterly based on their sustainability profiles.

Thematic funds

Mirae Asset also introduced two thematic funds, providing investors with exposure to the metaverse and the electric vehicle sectors.

The Global X Metaverse Theme Active ETF has a net asset value (NAV) of HK$9.4m, and invests in 15 securities listed in New York, Shenzhen and Hong Kong.

Each unit of the fund has a NAV of $8 and the fund has an all-inclusive management fee of 0.75%.

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, said the asset manager.

With the same fund size, the Global X Electric Vehicle and Battery Active ETF invests in 18 companies involved in the development of electric vehicles (EV) and batteries.

The top holdings include 9.73% in US electric car manufacturer Tesla, and 7.97% in Chinese automaker BYD.

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, said Mirae Asset.

As of December 2021, Mirae Asset has over $236bn of AUM, and offers 396 ETF globally.

The group’s ETFs have a combined AUM of $85.8bn and are listed in 9 countries, according to the firm.