Samsung Asset Management (Hong Kong) announced Friday the launch of the Samsung S&P High Dividend APAC ex NZ REITs ETF under the code "3187." That marks the first REITs ETF in Hong Kong.
The ETF was priced at $2.5 (HK$20) per share, expected to debut on the Hong Kong Stock Exchange next Thursday. The minimum purchase amount is $500 for 200 shares.
The company said the fund has a management fee of 0.65% and the total expense ratio is expected to be around 1.5%.
The ETF has holdings diversified across multiple sectors from office and apartment buildings to hotels, warehouses, hospitals, shopping centers, parking lots, etc. with business spanning from Asia to the U.S. and Europe.
Subject to the ETF manager’s discretion, the fund will pay out semi-annual dividends, expectedly in June and December, according to the issuer.
The underlying index that this ETF tracks is S&P High Yield Asia Pacific-Ex New Zealand REITs Select Index.
Compiled and published by S&P Dow Jones Indices, the index is a free float market capitalization-weighted index which measures the performance of 30 of the highest dividend-yielding REITs in the S&P Asia Pacific REIT Index excluding those in New Zealand. The Index includes constituents in Singapore, Hong Kong, Australia, Japan and South Korea.
Under the current high-volatility yet low-yield economic environment, local commentators said the new ETF could be quite attractive to investors interested in the property market across multiple geo-markets.
The issuer said the performance of such funds has a low correlation with broad market indices historically.