CSOP MAG Seven ETF (3454.HK) to List on HKEX Tomorrow
HONG KONG–(BUSINESS WIRE)–The first MAG Seven ETF in Hong Kong, CSOP MAG Seven ETF (3454.HK), will be listed on the Hong Kong Stock Exchange on November 6, 2024. In order to track the performance of the Solactive Magnificent Seven Index (the “Index”), 3454.HK deploys a full replication strategy. With listing price of about 7.8 HKD per unit, trading unit of 100, and management fee of 0.6%, 3454.HK has received initial investment of 5 million US dollars.
The term “MAG Seven”, or “Magnificent Seven”, was coined by Bank of America Chief Investment Strategist Michael Hartnett in 2023. Tech behemoths comprising Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla make up the “MAG Seven” universe. MAG Seven companies are known for their market leadership, technological influence, and impact on consumer behavior. With USD 15.41 trillion of market cap, MAG Seven stocks have now surpassed the total size of Japan, Canada and the UK’s stock markets1. MAG Seven’s weight in the S&P 500 Index has approximately tripled since 2015, rising from 11.93% to 31.65%2. In the tech-heavy Nasdaq 100 Index, the proportion of MAG Seven has retained its magnificence with steady increase, dominating the market perennially3.
The Index offers equal-weighted exposure to MAG Seven companies and is rebalanced on a quarterly basis, with each stock comprising approximately 14.29%. Since 2015, the Index has been outperforming major indices. While the Nasdaq Composite achieved 44.64% and the S&P 500 yielded 26.29% annual return in 2023 respectively, Solactive Magnificent Seven Index outstripped both indices outright with a remarkable 108.39% annual return4. 3454.HK provides an opportunity to buy MAG Seven stocks at once with low investment thresholds during Hong Kong trading hours.
Ms. Ding Chen, CEO of CSOP, is pleased to announce that the CSOP MAG Seven ETF will be listed on the Hong Kong Stock Exchange tomorrow. She comments: “Since our establishment in 2008, CSOP has been committed to providing high-quality and innovative investment tools to Asian investors. Today, we are proud to introduce the first Magnificent Seven ETF to Hong Kong. This allows investors to easily access the US leading tech companies in a flexible and transparent manner.”
About CSOP
As a leading ETF manager in Asia, CSOP is committed to facilitating cross-border investment through the provision of efficient and transparent ETF products. CSOP has been a trailblazer in Hong Kong’s ETF market, managing 46 ETFs, with 5 consistently ranking among the top 10 most traded ETFs throughout the year*.
CSOP’s dedication to cross-border initiatives and partnerships remains steadfast. We are the sole issuer involved in all ETF connectivity programs between Mainland China and Hong Kong SAR. CSOP ETFs represent 75% of the total holdings of southbound investors among eligible Hong Kong-listed ETFs in the ETF Connect**, and over 98% market share in ETF Cross-listing schemes***. We were also the first issuer to participate in the China – Singapore ETF link scheme.
* Source: Bloomberg, 2024/1/1 – 2024/7/31.
**Source: CCASS, Bloomberg, CSOP. As of 2024/8/31, the asset under management holding of 3033.HK and 3037.HK accounted for 75% of the total southbound investors’ holdings of the total 16 eligible HK-listed ETFs.
*** Source: Bloomberg, 2024/7/31.
Disclaimer: The product(s) is/are authorized by the Securities and Futures Commission (“SFC”) in Hong Kong. Such authorization does not imply any official recommendation by the SFC.
This document is for general information only and do not constitute any kind of advice in any way as an offer or solicitation to deal in any investment products.
Investment involves risks. Past performance information presented is not indicative of future performance. Investors should refer to the Prospectus and the Product Key Facts Statement for further details, including product features and the full list of risk factors. Investors should not base on this document alone to make investment decisions. This document is not applicable in jurisdictions where the distribution of this document is restricted.
This document is not legally binding. CSOP does not warrant the accuracy, reliability, timeliness, completeness or reasonableness of this document. This document does not confer upon the recipient any copyright or intellectual property rights (whether direct, indirect, or implied) in the use of the information contained herein. This document (and information in this document) should not be copied, reproduced, or distributed to any parties without the written consent of CSOP.
The investments of the product(s) maybe concentrated in certain areas, markets and sectors. The value of the product(s) may be more volatile than that of a fund having a more diverse portfolio of investments and companies that adopt more traditional business models.
For the Index Provider Disclaimer, please refer to the Product’s offering document. This document is prepared by CSOP Asset Management Limited and has not been reviewed by the Securities and Futures Commission in Hong Kong.
Issuer: CSOP Asset Management Limited
______________________________
1 Source: Bloomberg, JPEX, LSEG, TSX, as of 2024/8/30.
2 Source: Bloomberg, 2015/5/1 – 2024/9/30.
3 Source: Bloomberg, 2015/5/1 – 2024/9/30.
4 Source: Bloomberg.
Contacts
For inquiries, please contact:
Jennifer Li / +852 3406 5650 / [email protected]
Tina Shu / +852 3406 5675 / [email protected]
