Global X Hang Seng High Dividend Yield ETF

IMPORTANT INFORMATION

Investors should not base investment decisions on this website alone. Please refer to the Prospectus for details including the product features and the risk factors. Investment involves risks. There is no guarantee of the repayment of principal. Investor should note:

Global X Hang Seng High Dividend Yield ETF’s (the “Fund’s”) investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer specific factors.
There is no assurance that dividends will be declared and paid in respect of the securities comprising the Hang Seng High Dividend Yield Index (the “Index”). Dividend payment rates in respect of such securities will depend on the performance of the companies or REITs of the constituent securities of the Index as well as factors beyond the control of the Manager including but not limited to, the dividend distribution policy of these companies or REITs.
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 Index.
The Manager may at its discretion pay dividend out of the capital or gross income of the fund. Payment of dividends out of capital to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of the Fund’s capital may result in an immediate reduction of the Net Asset Value per Unit.
The trading price of the Fund’s 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.
The Fund’s synthetic replication strategy will involve investing up to 50% of its net asset value in financial derivative instruments (“FDIs”), mainly funded total return swap transaction(s) through one or more counterparty(ies). Risks associated with FDIs include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. FDIs are susceptible to price fluctuations and higher volatility, and may have large bid and offer spreads and no active secondary markets. The leverage element/component of an FDI can result in a loss significantly greater than the amount invested in the FDI by the Sub-Fund.
As part of the securities lending transactions, there is a risk of shortfall of collateral value due to inaccurate pricing of the securities lent or change of value of securities lent. This may cause significant losses to the Fund. The borrower may fail to return the securities in a timely manner or at all. The Fund may suffer from a loss or delay when recovering the securities lent out. This may restrict the Fund’s ability in meeting delivery or payment obligations from realisation requests.

How Dividends Can Empower Your Portfolio - The Case for a High Dividend Yield Investment Strategy

Global X Hang Seng High Dividend Yield ETF

In a single trade, access 50 of the highest dividend yielding securities listed in Hong Kong.

Stock Code

3110 (HKD)^#
Underlying Index

Hang Seng High Dividend Yield Index
AUM^* (as of )

HK$
Ongoing Charges Over A Year^{^} The ongoing charges figure is an annualized figure based on the ongoing expenses of the Fund, expressed as a percentage of the Fund’s average net asset value over the same period. The figure may vary from year to year. The Fund adopts a single management fee structure with effect from 1 November 2021, 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. From 1 November 2021 onwards, the ongoing charges of the Fund are fixed at 0.68% of the Fund’s net asset value, which is equal to the current rate of the management fee of the Fund. For the avoidance of doubt, any ongoing expenses of the Fund exceeding the ongoing charges of the Fund (i.e. the management fee) shall be borne by the Manager and shall not be charged to the Fund. Please refer to the Key Facts Statement for section headed “Ongoing fees payable by the Sub-Fund” and the Prospectus for further details.

0.68%
Annualized Yield

7.04% ^**
Dividend rate is not guaranteed, distributions may be made out of capital or income at the manager’s discretion and please refer to clause 4 in important information
Inception Date

11 Jun 2013
Morningstar Rating^TM
(as of 31 May 2022)
Product Details^#

Factsheet

^ 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.

# 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).
**The Manager may at its absolute discretion declare distributions semi-annually to unitholders in each financial year and details of the distribution declaration dates, distribution amounts and ex-dividend payment dates will be published on the Manager’s website https://www.globalxetfs.com.hk/. Distributions may be made out of capital or income at the Manager’s discretion. There can be no assurance that a distribution will be paid and dividend rate is not guaranteed. Please refer to the prospectus of the fund to understand the distribution policy and other details. The annualized yield is calculated as follows: (dividends per share distributed in Sep 2021 and Mar 2022)/net asset value per unit of the fund on the ex-dividend date. Investors should note that yield figures are estimated and for reference only and do not represent the performance of the Fund, and that there is no guarantee as to the actual frequency and/or amount of dividend payments. Please note that a positive distribution yield does not imply a positive return on the total investment. Investors should not base investment decisions on the above information alone. Please refer to the Prospectus(including Product Key Facts Statement) for details including the product features and the risk factors. Investment involves risks. Past performance is not indicative of future performance.
© 2022 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Mind the Yield Gap

Much of the world, especially developed markets, has experienced a prolonged period of ultra-low interest rates. This is mainly due to the adoption of quantitative easing by central banks as a tool to battle financial and economic crises and stimulate growth. Though major global central banks are gradually dialling back quantitative easing, the interest rate normalization process is expected to be slow over the coming years. Historically, investors relied on fixed income investments to deliver high levels of income at relatively lower levels of risk. However, low yields have resulted in a significant gap between investors’ income needs and the income delivered by their fixed income investments. Exacerbating this issue is rising longevity, which will result in longer periods that investors spend in retirement. In the case of Hong Kong, the life expectancy of the population has steadily increased during the past 50 years from 67.8 years for males and 75.3 years for females in 1971, to 82.7 years for males and 88.1 years for females in 2020.¹ Hence, there is a pressing need for investors to consider investments that consistently generate high yields, thus allowing them to mitigate longevity risk and adequately prepare for retirement.

The Case for High Dividend Stocks

Analysis of historical stock market performance suggests that high-yielding dividend stocks possess the potential not only to deliver high levels of income but to outperform broad indexes. The Hang Seng High Dividend Yield Index, which tracks the performance of the 50 highest yielding stocks and real estate investment trusts listed in Hong Kong, delivered cumulative total returns of 80.31% from its inception in December 2012 to October 2021, outperforming broader indices such as the Hang Seng Index’s cumulative total returns of 55.91% achieved in the same period.² In terms of risk-adjusted returns, the Hang Seng High Dividend Index exhibited 0.41x from December 2012 to October 2021, meaningfully higher than the Hang Seng Index’s 0.28x over the period.³ Risk adjusted returns measure an investment’s return after taking the degree of risk into account, helping investors to determine whether the risk taken is worth the expected reward. In addition, the Hang Seng High Dividend Yield Index delivered a much more attractive annual yield of 8.70% as of September 2021, compared to 2.9% of the Hang Seng Index.⁴

Sustained High Dividend Yield

The Hang Seng High Dividend Yield Index aims to reflect the overall performance of high-yield securities listed in Hong Kong and is comprised of only large-cap and mid-cap constituents of the Hang Seng Index, weighted by net dividend yield. The index has set strict requirements for stocks to be included as constituents, allowing it to work dynamically in adjusting the composition and maintain its high-yield nature. For example, it requires a cash dividend paid record of at least three consecutive fiscal years for its constituents, while the top 25% eligible securities in terms of one-year historical volatility will be excluded through rebalancing to avoid fluctuating constituents. The Index is also well diversified with 50 constituents from nine industries selected from the Hang Seng Index, which reduces industry and stock-specific risks. These characteristics have helped the index achieve a long track record of sustained high dividend yields, ranging from 4.08% to 9.25% from its inception in December 2012 to September 2021.⁵

*Source: Mirae Asset Global Investments.

1. Source: Centre for Health Protection, Department of Health, HKSAR, 2020.

2. Source: Bloomberg, as of 31 October 2021.

3. Ibid.

4. Source: Bloomberg, as of 30 September 2021.

5. Source: Hang Seng Indexes, October 2021. The Hang Seng High Dividend Yield Index reflects the overall performance of high-yield securities listed in Hong Kong. The Hang Seng Index is a free-float capitalization-weighted index of a selection of companies from the Stock Exchange of Hong Kong. Past performance is not indicative of future performance.

This website is intended for Hong Kong investors only. Your use of this website means you agree to our Terms of use. This website is strictly for informational purposes only and does not constitute a representation that any investment strategy is suitable or appropriate for an investor’s individual circumstances. In 2018, Global X was acquired by Mirae Asset Global Investments and Mirae Asset Global Investments Co., Ltd. is the parent company of Mirae Asset Global Investments (Hong Kong) Limited.

The information contained in this website is for information purposes only and does not, constitute any recommendations, offer or solicitation to buy, sell or subscribe to any securities or financial instruments in any jurisdiction. Investment involves risk. It cannot be guaranteed that the performance of the Product will generate a return and there may be circumstances where no return is generated or the amount invested is lost. Past performance is not indicative of future performance.

Before making any investment decision to invest in the Product, investors should read the Product’s prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Product and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investments.

Certain information contained in this website is compiled from third party sources. Whilst Mirae Asset Global Investments (Hong Kong) Limited (“Mirae Asset HK”), the Manager of the Product, has, to the best of its endeavor, ensured that such, information is accurate, complete and up-to-date, and has taken care in accurately reproducing the information. Mirae Asset HK accepts no liability for, any loss or damage of any kind resulting out of the unauthorized use of this website.

The Products are not sponsored, endorsed, issued, sold or promoted by their index providers. For details of an index provider including any disclaimer, please refer to the relevant Product’s offering documents.

The contents of this material is advertising in nature and is prepared by Mirae Asset Global Investments (Hong Kong) Limited and has not been reviewed by the Securities and Futures Commission of Hong Kong. Issuer: Mirae Asset Global Investments (Hong Kong) Limited.

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