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Horizons launches Hong Kong’s lowest-fee ETFs


The Horizons Exchange Traded Funds Series has launched two new ETFs with the lowest fees ever found in the Hong Kong market.

The following two ETFs have begun trading on the Hong Kong stock exchange:
• Horizons MSCI China ETF (HKSE: 3040)
• Horizons Hang Seng High Dividend Yield ETF (HKSE: 3110)
"The significantly lower fees of these two new ETFs will allow investors to reduce costs and enhance index tracking precision, thereby maximizing total net returns over the long run," says Laura Lui, head of ETF at Mirae Asset Global Investments (Hong Kong), 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 per cent and 0.25 per cent, respectively. These are much lower than similar ETFs in Hong Kong, which have management fees and TERs averaging 0.50 per cent and 0.72 per cent, respectively.
The annual management fee and TER of the Horizons Hang Seng High Dividend Yield ETF are capped at 0.18 per cent and 0.38 per cent, respectively, as compared to 0.55 per cent and 0.88 per cent, 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," Lui says. "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, says: "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 10 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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