Asia Pacific ETFs Summary
Core Content
This document provides an analysis of the performance and dynamics of Exchange-Traded Funds (ETFs) in the Asia-Pacific region during January 2016. It outlines market volatility, changes in ETF asset value, performance of volatility-based ETFs, forex-hedging trends, and a conservative market outlook. Additionally, it includes data on ETF listings, AUM (Assets Under Management), trading values, and newly listed ETFs.
Main Points
Market Volatility in January 2016
- Asian markets experienced substantial volatility in January.
- Shanghai Composite fell by 22%, Shenzhen Composite by 25%, Hang Seng by 10%, and HSCEI by 14%.
- Nikkei 225 and Singapore STI dropped by 8%, while Kospi and Taiwan TWI fell by 3% and 2%, respectively.
- Indonesia IDX gained 3%, and Thailand SET remained largely unchanged but showed an upside bias.
- Asian currencies continued to weaken against the US dollar, with the Bank of Japan (BOJ) adopting a negative interest rate policy at the end of January.
ETF Asset Value Declines
- ETF assets fell by USD10 billion in January, with 50% of the decline attributed to products listed in Tokyo and Hong Kong, driven by currency weakening and capital flight.
- Shanghai-listed ETFs saw an increase in asset value by over KRW2 billion due to bottom fishing in the stock market and liquidity hikes via reverse repurchase agreements (RRPs).
Performance of Volatility-Based ETFs
- Volatility futures-based ETPs and inverse ETFs (based on stocks and oil prices) performed best year-to-date.
- Nikkei Volatility Index-based ETNs surged by 36%.
- Gold-based ETFs showed relative strength amid rising market volatility.
- Australian commodity- and Chinese stock-based ETFs fared poorly, with energy- and natural gas-based ETFs in Australia falling by 50%.
Forex-Hedging Products in the US
- Dollar strengthening is expected to continue due to Fed rate hikes and economic slowdowns in other regions.
- US investors have increased their exposure to forex-hedging products, while Asian investors have raised their holdings of USD-denominated assets, particularly commodity ETFs, to benefit from price rebounds.
Conservative Market Outlook
- Worldwide stock market collapses have subsided due to quantitative easing by the ECB and BOJ.
- Oil prices showed a slight technical rebound on production-cut expectations.
- Market volatility seems to be waning, but instability remains.
- Recommendations:
- Stay conservative in investment approach.
- Anticipate: 1) more US rate hikes; 2) China's economic slowdown; 3) Hong Kong dollar depreciation; and 4) increased commodity price volatility.
- Investors should consider raising cash holdings or increasing the liquid asset portion of their portfolios.
- Maintain a risk parity strategy.
Key Information
ETF Listings by Exchange (As of Jan 29, 2016)
| Exchange |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
| Australia |
|
|
|
|
|
|
|
|
|
|
| Bangkok |
1 |
1 |
1 |
1 |
5 |
3 |
5 |
4 |
|
|
| Hong Kong |
3 |
6 |
12 |
20 |
8 |
29 |
11 |
12 |
11 |
1 |
| Indonesia |
1 |
|
|
|
|
1 |
2 |
3 |
1 |
|
| Korea |
5 |
15 |
18 |
16 |
44 |
29 |
16 |
36 |
108 |
4 |
| Bursa Malaysia |
1 |
1 |
|
2 |
|
|
|
1 |
|
|
| Mumbai |
|
|
|
|
|
|
|
|
|
|
| Ho Chi Minh |
|
1 |
|
|
|
|
|
1 |
|
|
| Nagoya |
|
|
|
|
1 |
|
|
|
|
|
| N.S. India |
6 |
3 |
2 |
8 |
7 |
2 |
4 |
4 |
7 |
|
| New Zealand |
|
|
|
|
|
|
|
2 |
|
|
| Osaka |
2 |
2 |
2 |
6 |
1 |
2 |
|
|
|
|
| Philippines |
|
|
|
|
|
|
|
|
|
|
| Shanghai |
1 |
|
2 |
7 |
11 |
6 |
18 |
11 |
2 |
|
| Shenzhen |
|
|
|
6 |
11 |
4 |
14 |
2 |
3 |
|
| Singapore |
1 |
5 |
2 |
2 |
4 |
2 |
|
|
|
|
| Taiwan |
4 |
4 |
1 |
|
5 |
3 |
|
4 |
4 |
3 |
| Tokyo |
|
43 |
6 |
13 |
18 |
7 |
20 |
18 |
29 |
|
| Total |
25 |
82 |
50 |
96 |
127 |
108 |
102 |
110 |
181 |
8 |
AUM of ETFs by Asset Class (As of Jan 29, 2016)
| Asset Class |
AUM (USDm) |
Number of ETFs |
| Equity |
227,451 |
765 |
| Fixed Income |
10,911 |
82 |
| Money Market |
5,115 |
80 |
| Commodity |
3,101 |
6 |
| Specialty |
1,344 |
67 |
| N/a |
456 |
4 |
| Mixed Allocation |
149 |
8 |
| Total |
248,527 |
1,012 |
AUM of ETFs by Exchange (As of Jan 29, 2016)
| Primary Exchange |
Total (USDm) |
Average (USDm) |
Previous Month-End (USDm) |
| Tokyo |
131,303 |
742 |
136,089 |
| Hong Kong |
32,611 |
291 |
37,694 |
| Shanghai |
24,836 |
345 |
22,823 |
| Korea |
18,512 |
92 |
18,432 |
| Singapore |
13,415 |
395 |
14,902 |
| Taiwan |
6,250 |
164 |
6,491 |
| Total |
248,527 |
278 |
258,359 |
Top-30 ETFs by AUM (As of Jan 29, 2016)
| ETF Name |
Exchange |
Benchmark |
Total AUM (USDm) |
Previous Month-End (USDm) |
| NOMURA ETF - NIKKEI 225 |
Tokyo |
NKY |
25,715 |
26,913 |
| NOMURA ETF - TOPIX |
Tokyo |
TPX |
22,827 |
24,472 |
| NIKKO ETF - NKY 225 |
Tokyo |
NKY |
12,340 |
13,098 |
| DAIWA ETF - NIKKEI 225 |
Tokyo |
NKY |
11,809 |
12,387 |
| DAIWA ETF - TOPIX |
Tokyo |
TPX |
10,883 |
11,442 |
| NIKKO ETF - TOPIX |
Tokyo |
TPX |
10,616 |
11,015 |
| TRACKER FUND OF HONG KONG |
Hong Kong |
HSI |
8,744 |
9,340 |
| NEXT FUNDS NKY225 LVRGED ETF |
Tokyo |
NKYLEV |
7,538 |
6,102 |
| MAXIS NIKKEI 225 ETF |
Tokyo |
NKY |
6,038 |
6,839 |
| HANG SENG H-SHARE IND ETF-HK |
Hong Kong |
HSI21N |
5,395 |
6,275 |
| CHINA 50 ETF |
Shanghai |
SSE50 |
4,729 |
4,408 |
| ISHARES FTSE A50 CHINA INDEX |
Hong Kong |
TX9HKNRH |
4,254 |
5,543 |
| SAMSUNG KODEX 200 ETF |
Korea |
KOSPI2 |
3,755 |
4,133 |
| HUATAI-PB CSI 300 ETF |
Shanghai |
SHSZ300 |
3,344 |
3,229 |
| MAXIS TOPIX ETF |
Tokyo |
TPX |
3,282 |
3,507 |
| CHINA CSI 500 ETF |
Shanghai |
n/a |
3,133 |
2,505 |
| HANG SENG INDEX ETF-HKD |
Hong Kong |
HSI1N |
4,846 |
5,282 |
| SAMSUNG KODEX LEVERAGE ETF |
Korea |
KOSPI2LG |
2,395 |
1,495 |
| ISHARES NIKKEI 225 ETF |
Tokyo |
NKY |
2,498 |
2,039 |
| YUANTA/P-SHRS TW TOP 50 ETF |
Taiwan |
TW50 |
2,408 |
2,441 |
ETFs with Top Trading Value (Based on 3-Month Average)
| Exchange |
Ticker |
Name |
Trading Value (‘000 USD) |
| Tokyo |
1570 JP |
NEXT FUNDS NKY225 LVRGED ETF |
1,672,701 |
| Tokyo |
1579 JP |
SIMPLEX NKY225 BULL 2X ETF |
123,731 |
| Tokyo |
1321 JP |
NOMURA ETF - NIKKEI 225 |
106,389 |
| Tokyo |
1357 JP |
NEXT FUNDS NK22 D-INVRS ETF |
105,061 |
| Tokyo |
1306 JP |
NOMURA ETF - TOPIX |
51,330 |
| Taiwan |
00633L TT |
FUBON SSE180 LEV 2X IN ETF |
95,020 |
| Taiwan |
00637L TT |
YUANTA/P-SHRS CSI 300 2X ETF |
44,086 |
| Taiwan |
0050 TT |
YUANTA/P-SHRS TW TOP 50 ETF |
21,620 |
| Shenzhen |
159915 CH |
E FUND CHINEXT PRICE INDEX |
106,852 |
| Shenzhen |
159003 CH |
CHINA MERCHANTS SEC DEP MM-A |
61,592 |
| Singapore |
INDIA SP |
ISHARES MSCI INDIA INDEX ETF |
1,612 |
| Singapore |
STTF SP |
SPDR STRAITS TIMES INDEX ETF |
1,149 |
| Singapore |
AJAC SP |
ISHARES JPM USD ASIA BOND |
540 |
| Singapore |
AHYG SP |
ISHARES ASIA HIGH YIELD BD |
329 |
| Bangkok |
TDEX TB |
THAIDEX SET50 ETF |
74 |
Newly Listed ETFs in January 2016
| Ticker |
Name |
Asset Class |
Domicile |
Inception Date |
Management Company |
| 237370 KS |
SS KODEX GROWTH DVD BAL ETF |
Mixed Allocation |
South Korea |
1/27/2016 |
Samsung Asset Management |
| 236460 KS |
HH ARIRANG SMT BETA LWVL ETF |
Equity |
South Korea |
1/12/2016 |
Hanwha Asset Management |
| 00649 TT |
FUH HWA HANG SENG ETF |
Equity |
Taiwan |
1/13/2016 |
Fuh-Hwa Securities Investment Trust |
| 00651R TT |
FUH HWA DAILY HS INVERSE ETF |
Equity |
Taiwan |
1/13/2016 |
Fuh-Hwa Securities Investment Trust |
| 00650L TT |
FUH HWA DAILY HANG SHENG 2X |
Equity |
Taiwan |
1/13/2016 |
Fuh-Hwa Securities Investment Trust |
| 83162 HK |
ISHARES MSCI CH A INTL ETF-R |
Equity |
Hong Kong |
1/28/2016 |
iShares ETFs/Hong Kong |
| 237350 KS |
SAMSUNG KODEX KOSPI100 ETF |
Equity |
South Korea |
1/27/2016 |
Samsung Asset Management |
| 237440 KS |
TIGER CONSUMER GOODS BAL ETF |
Equity |
South Korea |
1/27/2016 |
Mirae Asset Global Investments |