The Hang Seng Indexes Company Limited has licensed the Hang Seng High Dividend Yield Index to Horizons ETFs Management to serve as the underlying index for the creation of a Toronto Stock Exchange-listed exchange-traded fund (ETF) – the Horizons China High Dividend Yield Index ETF (HCN).
The Hang Seng High Dividend Yield Index tracks the performance of high-yield stocks and real estate investment trusts which have demonstrated a persistent dividend payment record.
Vincent Kwan, Director and General Manager of Hang Seng Indexes, says: “Hang Seng Indexes is delighted to have licensed its index to Horizons for the creation of an ETF. This is the first ETF tracking an index under the Hang Seng Family of Indexes to have been launched in Canada. The ETF offers Canadian investors an opportunity to gain exposure to the stocks with the highest net dividend yields in the Hong Kong stock market.”
Historically, many Canadian investors sought exposure to emerging Asia by holding North American multi-national stocks which have business interests in Asian economies," says Steve Hawkins, Co-CEO of Horizons ETFs. "The dynamics of the Chinese economy are changing and, in order to really capture China's long-term economic growth, investors should consider the direct exposure that HCN provides."
Through HCN, investors gain exposure to China's robust economic growth through equity securities that have a consistent three-year track record of paying dividends. A significant number of the Hong Kong-listed dividend-paying companies which HCN provides exposure to are China-based companies or have substantial business interests in mainland China.
"By investing in top dividend paying companies listed on the Hong Kong Stock Exchange, investors are not only getting timely exposure to Chinese companies with consistent dividend yields, but are also getting the added benefit of Hong Kong's modern market reforms, regulatory oversight and structure," adds Hawkins.
