Horizons ETFs Management (USA) has launched the Horizons Korea KOSPI 200 ETF (HKOR), the first ETF listed in the US that gives investors exposure to the KOSPI 200 Index.
The index holds 200 blue chip companies listed on the Korea Exchange (KRX).
HKOR seeks investment results that, before fees and expenses, generally correspond to the performance of the KOSPI 200 Index.
The KOSPI 200 is a free float-adjusted, market capitalisation weighted index, which is comprised of 200 blue chip companies listed on the KRX. It uses factors such as market and sector representation and liquidity to determine stock weightings.
HKOR will be the first country-specific ETF launched by Horizons ETFs in the US. The KOSPI 200 is a widely used Korean equity benchmark to access Korea in Asia. It also has a robust derivatives market that provides a strong depth of liquidity for ETFs that track the index.
“HKOR will be the lowest-cost (0.38 per cent total gross expense ratio) and most broadly diversified Korean equity ETF in the US” says Howard Atkinson, managing director, Horizons USA. “Korea is often listed as an emerging market economy, but with a well-established manufacturing base and steady GDP growth, it has an economic profile that is more in line with well-established developed markets, generally making it a more stable entry point into emerging market investing.”
Horizons USA’s global affiliates already have experience running KOSPI 200 ETF mandates in some of their other global ETF markets, such as Korea and Hong Kong.
Taeyong Lee, president of the global business unit of Mirae Asset Global Investments, says: “We have extensive experience in running KOSPI 200 mandates on our global ETF platform, so it was a natural progression that we leverage that expertise to give US investors low-cost exposure to the most broadly diversified Korean equity benchmark.”
Horizons will use Mirae Asset Global Investments (Hong Kong) Limited as the sub-manager of the ETF.