Fubon Fund Management (HK) debuts two new ETFs in Hong Kong
The Fubon ICE FactSet Taiwan Core Semiconductor Index ETF and Fubon FTSE Taiwan RIC Capped Index ETF - providing exposure to the leading Taiwanese companies with strong fundamentals and a global presence in the semiconductors industry
Fubon Fund Management (Hong Kong) has announced the launch of two new ETFs - the Fubon ICE FactSet Taiwan Core Semiconductor Index ETF (3076.HK), and the Fubon FTSE Taiwan RIC Capped Index ETF(3021.HK). They are set to debut on the Hong Kong Stock Exchange on January 13, 2022.
Fubon ICE FactSet Taiwan Core Semiconductor Index ETF tracks ICE® FactSet® Taiwan Core Semiconductor Index, the listing price is USD1 (approx. HKD 7.78) per unit with a trading board lot size of 200 units, the minimum investment amount is approximately HKD1,560.
Fubon FTSE Taiwan RIC Capped Index ETF tracks the FTSE Taiwan RIC Capped Index, the listing price is USD1 (approx. HKD 7.78) per unit with a trading board lot size of 200 units, the minimum investment amount is approximately HKD1,560.
Alan Ng, Managing Director at Fubon Fund Management (HK), said, “Fubon Fund Management (HK) is relatively new to the HK’s ETF market. By leveraging the strong capability and expertise of our parent company in launching ETFs, we hope to bring niche products to investors and contribute to the development of the HK’s ETF market with other industry players.”
Semiconductors are known as strategic assets in the 21st century and in a super-cycle. The rise of 5G, AI, electric vehicles and Metaverse spurs demand of semiconductors. Deloitte’s latest report published in October 20211 predicts that the global semiconductor market size will exceed US$1 trillion in 2030, more than double the amount of the 2020’s market size of US$440.4 billion.
Taiwan is a key region for the global semiconductor industry. The foundry sector with Taiwan Semiconductor Manufacturing Co. (“TSMC”) as a market leader has a global market share of more than 64%2 which plays a pivotal role in the global semiconductor supply chain. In addition to foundry, Taiwan also has a leading position in the global chip design and the package test sector.
The ICE FactSet Taiwan Core Semiconductor Index tracks the performance of the top semiconductor stocks in Taiwan. The cumulative return in the past five years is 292.10%, and the latest 1-year, 3-year and 5-year (as at 30 November, 2021) annualised returns are 49.68%, 46.28% and 31.43%. Both short-term and long-term returns are significantly outperforming the Taiwan Weighted Index and the MSCI Taiwan Index.
Alan concluded, “Semiconductors has become a hot investment theme since last year and we believe that TSMC is nothing new to investors. With the integrated semiconductor supply chain in Taiwan, there are many semiconductor stocks which have large growth potential other than TSMC. The newly launched ETF enables investors to unlock the growth opportunities in the industry. Today, we proudly present the Fubon ICE FactSet Taiwan Core Semiconductor Index ETF, the very first thematic ETF outside Taiwan which tracks the performance of Taiwan’s semiconductor industry, as well as the Fubon FTSE Taiwan RIC Capped Index ETF, the first ETF in HK which tracks the FTSE Taiwan Index. It is our pleasure to offer new investment opportunities to both retail and institutional investors to tap in the high-growth market.”