GROWING INSTITUTIONAL FOOTPRINTS - HKEX · SMART-BETA ETFs, WHY? 51% of respondents say Hong Kong...
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ASIA ETF SURVEY 2018 GROWING INSTITUTIONAL FOOTPRINTS Institutional investors have been a growing force that shapes Asia’s ETF landscape. A recent survey revealed the top considerations among institutional investors in ETF selection. The findings also offer a glimpse of where the ETF market is heading next. Take a look: of respondents include/have included ETFs in their portfolio 1. DO YOU INVEST IN ETFs? 3. HOW DO YOU GAUGE ETF LIQUIDITY? 88% 2. WHAT ARE YOUR PRIME CONSIDERATIONS IN SELECTING ETFs?* Yes 51% 51% 42% 40% 28% 21% 21% 15% Expense ratio Tracking error / tracking difference 9% 56% 35% Liquidity of underlying holdings Onscreen liquidity No gauge 4. WILL YOU CONSIDER TRADING ETFs IN HONG KONG – ASIA’S ETF MARKETPLACE?* 5. WHICH OF THE FOLLOWING ETF TREND(S) ARE YOU INTERESTED IN?* 6. IF YOU AREN'T INVESTING IN SMART-BETA ETFs, WHY? 51% of respondents say Hong Kong is a preferred overseas destination for ETF investments Insufficient knowledge Short track record Smart Beta managed internally 45% 30% 25% 56% Smart Beta ETF 43% Fixed income ETF 36% Active ETF 1 ETF issuer reputation / experience Past performance Bid-ask spread Index provider reputation / experience Tax efficiency Onscreen turnover
Transcript of GROWING INSTITUTIONAL FOOTPRINTS - HKEX · SMART-BETA ETFs, WHY? 51% of respondents say Hong Kong...
ASIA ETF SURVEY 2018GROWING INSTITUTIONAL FOOTPRINTS
Institutional investors have been a growing force that shapes Asia’s ETF landscape. A recent survey revealed the top considerations among institutional investors in ETF selection. The findings also offer a glimpse of where the ETF market is heading next. Take a look:
of respondents include/have included ETFs in their portfolio
1. DO YOU INVEST IN ETFs?
3. HOW DO YOU GAUGE ETF LIQUIDITY?
88%2. WHAT ARE YOUR PRIME CONSIDERATIONS IN SELECTING ETFs?*
Yes 51%51%42% 40%28%21%
21%
15%
Expense ratio
Trac
king
err
or /
trac
king
diff
eren
ce9%
56%
35%
Liquidity of underlying holdings Onscreen liquidityNo gauge
4. WILL YOU CONSIDER TRADING ETFs IN HONG KONG – ASIA’S ETF MARKETPLACE?*
5. WHICH OF THE FOLLOWING ETF TREND(S) ARE YOU INTERESTED IN?*
6. IF YOU AREN'T INVESTING IN SMART-BETA ETFs, WHY?
51%of respondentssay Hong Kongis a preferred overseas destinationfor ETF investments
Insufficient knowledge
Short track record
Smart Beta managed internally
45%30%25%
56%Smart Beta ETF
43%Fixed income ETF
36%Active ETF
1
ETF issuerreputation /experience
Past
per
form
ance
Bid-askspread
Index providerreputation /experience
Tax
effici
ency
Onscreenturnover
C-level Head
7. IN THE NEXT 12 MONTHS, HOW WILL YOU CHANGE YOUR...
ETF allocation Portfolio risk
72%Increase
26%No Change
2%Reduce or
no allocation
Increase
Decrease
Unchanged
25%
27%
48%
57% Increase
18% remain the same
1% Decrease
24% No allocation
ESG allocation
8. FINALLY, TELL US ABOUT YOUR CHINA STRATEGY...
WHERE DO YOU SEE THE MOST ATTRACTIVE OPPORTUNITIES?*
HOW DO YOU GAIN EXPOSURE?
45%Through global / EM exposure
55%Through China -
specific exposure
79%Technology
37%Healthcare
16%Finance
26%TransportationBelt and Road
32%
*Questions 2, 4, 5 and 8 allow multiple selection and the figures may not add up to 100 per cent.**Direct investment refers to Stock Connect, Bond Connect, RQFII and QFII; pooled products refer to ETFs and mutual funds.
DisclaimerHKEX and/or its subsidiaries endeavour to ensure the accuracy and reliability of the information provided, but do not guarantee its accuracy and reliability and accept no liability (whether in tort or contract or otherwise) for any loss or damage arising from any inaccuracy or omission or from any decision, action or non-action based on or in reliance upon information contained in this document.
Asset management firm Bank Insurance company Brokerage firm
OthersCorporatePension Family office
Manager Others
WANT TO LEARN MORE?Website : www.hkex.com.hk/ETFEmail : [email protected]
15%4%
44%
37%
26%
8%4%
2%1%1%
12%46%
The survey was conducted by the Asia ETF Forum in Taipei, Hong Kong, Seoul, Bangkok, Singapore and Tokyo from 17 April through 27 September 2018. 275 forum attendees responded. The number of respondents to each question may differ.
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WHICH VEHICLE(S) DO YOU INVEST IN?**
61%Pooledproducts
39%Directinvestment
