Investors should not base investment decisions on this website alone. Please refer to the Prospectus for details including product features and the risk factors. Investment involves risks. Past performance is not indicative of future performance. There is no guarantee of the repayment of the principal. Investors should note:
- Global X Asia Pacific High Dividend Yield ETF (the “Fund”) aims to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the Solactive Asia Pacific High Dividend Yield Index (the “Underlying Index”).
- There is no assurance that dividends will be declared and paid in respect of the securities comprising the Underlying Index. Dividend payment rates in respect of such securities will depend on the performance of the companies of the constituent securities of the Underlying Index as well as factors beyond the control of the Manager including but not limited to, the dividend distribution policy of these companies.
- Whether or not distributions will be made by the Fund is at the discretion of the Manager taking into account various factors and its own distribution policy. There can be no assurance that the distribution yield of the Fund is the same as that of the Underlying Index.
- Dividends may be paid from capital or effectively out of capital of the Fund, which may amount to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment and result in an immediate reduction in the Net Asset Value per Unit of the Fund.
- The Underlying Index is a new index. It has minimal operating history by which investors can evaluate its previous performance. There can be no assurance as to the performance of the Underlying Index. The Fund may be riskier than other exchange traded funds tracking more established indices with longer operating history.
- The Fund invests in emerging markets which may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risk, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.
- The trading price of the Fund unit (the “Unit”) on the Stock Exchange of Hong Kong is driven by market factors such as demand and supply of the Unit. Therefore, the Units may trade at a substantial premium or discount to the Fund’s net asset value.
Global X Asia Pacific High Dividend Yield ETF (3116)
Access High Dividend Yield In The Asia Pacific
Asia Pacific equities have become increasingly attractive for income-seeking investors due to their high dividend yields.
With inflationary pressures spreading across the global economy, central banks have been forced to react swiftly with monetary tightening measures ranging from tapering, interest rate hikes, and balance sheet unwinding. Whilst high-yielding stocks are often thought to face headwinds in a rising yield environment as competition for investors’ capital intensifies, Asian stocks have exhibited the potential not only to deliver high levels of income but to outperform broad market indexes.
In a single trade, the Global X Asia Pacific High Dividend Yield ETF (3116) delivers access to 40 of the highest-yielding securities listed in the Asia Pacific region.
Watch this video to learn more about our Asia Pacific high dividend yield strategy
A Leading Region For Dividend Income
Asia Pacific equities have become an increasingly attractive option for income-seeking investors due to their high dividend yields. In past years, many held the view that companies located in Asia - a region known for its high levels of economic growth rather than company dividends - did not hold income appeal and were frequently overlooked. However, evidence indicates this to be a misconception – the Asia Pacific has consistently offered dividend yields that are higher than other regions and it is home to some of the world’s highest yielding companies.
One reason for this is solid corporate fundamentals – after long periods of growth and productivity gains, many Asian companies boast strong balance sheets with healthy cash reserves and low levels of debt. Out of the numerous ways this surplus cash could be used, Asian corporates frequently choose to maximize shareholder value by paying and sustaining high levels of dividends.
Putting The Spotlight On Dividend Taxes
Taxes levied on dividends can have a material effect on income portfolios but they are not widely understood by investors. With many global jurisdictions withholding dividend taxes at source from the gross dividend amount, investors often fail to recognize and assess their full impact. Whilst the rate varies from country to country, the Asia Pacific typically levies less dividend taxes compared to the developed markets.
For example, the United States withholds 30% on equity dividends paid to non-US persons, which is in sharp contrast to Asian markets such as Hong Kong and Singapore which do not levy any withholding tax on dividends.
The Case For Dividends In A Rising Yield Environment
With inflationary pressures spreading across the global economy, central banks have been forced to react swiftly with monetary tightening measures ranging from tapering, interest rate hikes and balance sheet unwinding. Against this backdrop, bond yields have been rising at a rapid pace. Whilst high-yielding stocks are often thought to face headwinds in a rising yield environment as competition for investors’ capital intensifies, in Asia these stocks have exhibited the potential not only to deliver high levels of income but to outperform broad market indexes.
Over the previous three periods of rising yields, the Solactive Asia Pacific High Dividend Yield Index outperformed the MSCI AC Asia Pacific Index by 7.3% on a cumulative basis, whilst in terms of dividend yield, the Solactive Asia Pacific High Dividend Yield Index delivered 8.0% (as of 30 June 2022), which is more than double the 3.2% offered by the Hang Seng Index.1 One reason for this is that high yielding companies are typically less leveraged and hence are less impacted by higher bond yields and borrowing costs.
3116
Global X Asia Pacific High Dividend Yield ETF
| Stock Code | 3116 (HKD)# |
| Underlying Index | Solactive Asia Pacific High Dividend Yield Index |
| Total Net Asset Value* (As of ) | HKD $ |
Ongoing Charges Over A Year^ | 0.68% |
| Index Dividend Yield (As of 5 Dec 2022)1 | 9% |
| Inception Date | 26 Jul 2022 |
# Investment involves risk. Before making any investment decision to invest in the Fund, investors should read the Fund’s Prospectus for details and the risk factors. Visit Global X ETFs Hong Kong website for more details relating to this Fund (including but not limited to the Fund’s iNAV, market price, performance, daily holdings and tracking difference / error).
* Source: Mirae Asset Global Investments (Hong Kong) Limited.
^ The Fund adopts a single management fee structure, whereby a single flat fee will be paid out of the assets of the Fund to cover all of the costs, fees and expenses of the Fund. Click [?] to learn more.
1. Source: Solactive, 5 Dec 2022. Dividend rate is not guaranteed, the dividend may pay out from capital. Index dividend yield is calculated as follows: Dividends per share distributed in the past 12 months / Net asset value of the Index.
Index dividend yield is not equivalent to yield/return of the fund. Positive index dividend yield does not mean positive return.
High Income Potential
The Asia Pacific offers high levels of dividend yield driven by the strong fundamentals and cash balances of its companies
Tax Efficiency
Dividend taxes are lower in the Asia Pacific compared to major developed market countries such as the United States
Outperformance In A Rising Rate Environment
High yielding Asian stocks have demonstrated outperformance potential in previous periods of rising bond yields
The Global X Asia Pacific High Dividend Yield ETF (3116) delivers access to 40 of the highest dividend-yielding securities listed in the Asia Pacific.
ETFs are becoming more popular in Hong Kong, as many investors started to choose ETFs as an investment tool to strengthen their portfolio. Watch ETF Investing Tutorial videos to learn more about ETF.
