Global X China Innovator Active ETF

Risk Disclosures

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 the principal. Investors should note:

Global X China Innovator Active 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.
The Fund employs an actively managed investment strategy. The Fund does not seek to track any index or benchmark, and there is no replication or representative sampling conducted by the Manager. It may fail to meet its objective as a result of the Manager’s selection of investments, and/or the implementation of processes which may cause the Fund to underperform as compared to other index tracking funds with a similar objective.
Due to the concentration of the Fund’s investments in companies involved in Innovative Business, which are characterised by relatively higher volatility in price performance when compared to other economic sectors, the performance of the Fund may be more volatile than that of a fund having a more diverse portfolio of investments. In addition, the performance of the Fund may be exposed to risks associated with different sectors and themes, including industrial, consumer discretionary, healthcare, financials, information technology, robotics and artificial intelligence as well as technology (such as internet, fintech, cloud, e-commerce and digital). Fluctuations in the business for companies in these sectors or themes will have an adverse impact on the net asset value of the Fund.
China is an emerging market. The Fund invests in Chinese companies which may involve increased risks and special considerations not typically associated with investments in more developed markets, such as liquidity risk, currency risks, political risk, legal and taxation risks, and the likelihood of a high degree of volatility.
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.

China - The Next Innovation Superpower

Global X China Innovator Active ETF

In a single trade, gain access to dozens of innovative Chinese companies across multiple disruptive themes reshaping the economy.

Stock Code
3058 (HKD)^#
AUM¹ (as of )
HK$
Ongoing Charges Over A Year²
0.75%
Inception Date
10 Mar 2021
Product Details^#

Factsheet

Why Invest?

High Growth Potential

Global X China Innovator Active ETF enables investors to access high growth potential through companies at the leading edge of multiple disruptive themes reshaping China.

Experienced Investment Team

The fund’s investment team has extensive track records in actively-managed equity strategies targeting China and the disruptive innovations tied to its economy.

ETF Efficiency

In a single trade, the fund delivers access to dozens of innovative companies across a range of disruptive themes, along with the outperformance potential of active management.

A Multi-Theme ETF Targeting China’s Innovation Leaders

China is rapidly building an innovation-driven economy. Technological progress and the invention of new business models are disrupting existing industries. Homegrown companies at the cutting edge of innovation are emerging as global leaders of high-tech industries. Profound challenges arising from demographic shifts and the degradation of the environment have spurred both the government and private sector to commit more resources to drive innovation and technological advancement. The Global X China Innovator Active ETF invests in innovative Chinese companies across multiple disruptive themes that are reshaping the economy. The investment themes in which the fund may invest are presented below.

THE THEMES RESHAPING CHINA’S ECONOMY

What’s Driving China’s Emergence As An Innovation Leader?

With labour market expansion and investment no longer sustaining economic growth, China has long recognized the need for innovation-driven development. Policies such as “Made in China 2025” ³ selected high-tech industries for state support, whilst “New Infrastructure” projects are aimed at augmenting the country’s digital networks so that innovation industries can thrive.

Chinese companies also benefit from the unparalleled scale of their domestic market whilst high levels of internet and smartphone penetration make it easier for the implementation of tech-driven business models. China also achieved significant human capital development in recent years, especially in its STEM workforce.

GROSS DOMESTIC EXPENDITURE ON RESEARCH & DEVELOPMENT BY COUNTRY

Source: National Science Foundation, 2018.

CHINA’S ACTUAL AND PROJECTED ANNUAL EXPENDITURE ON NEW INFRASTRUCTURE

Source: Morgan Stanley & Bloomberg , 2019.

Actively Managed by a Research-Driven Investment Team

The fund is Hong Kong’s first actively managed ETF focusing on Chinese equities. Its active nature enables it to optimize allocations across selected themes and their underlying investments, and adjust positions as required by changing market conditions. In addition to the potential for outperformance, the fund also delivers the benefits of an ETF such as convenience, cost-efficiency and transparency.

The fund is managed by Phil S. Lee, the Head of Asia Pacific Research at Mirae Asset Global Investments (Hong Kong) Limited. A portfolio manager with more than 15 years’ investment experience, Phil has been awarded the highest ‘AAA’ rating by Citywire⁴ and manages several Asia and China equities funds that have been rated ‘5-stars’ by Morningstar.⁵

Supporting Phil is an experienced team of on-the-ground research analysts, who collaboratively perform fundamental research on Asian companies. The team is part of the wider network of more than 200 investment professionals of the Mirae Asset Global Investments Group, of whom more than 170 are based in Asia.

Phil S. LEE

Head of Asia Pacific Research 15 years’ investment experience

Mirae Asset Asia Pacific Research Team

Source: Mirae Asset Global Investments, 2021.

1. Source: Mirae Asset Global Investments.
2. As the Fund is newly set up, this figure is an estimate only and represents the sum of the estimated ongoing charges over a 12-month period, expressed as a percentage of the estimated average net asset value over the same period. It may be different upon actual operation of the Fund and may vary from year to year. As the Fund adopts a single management fee structure, the estimated ongoing charges of the Fund will be equal to the amount of the single management fee.
3. Source: Gov.cn, 2021.
4. Source and Copyright: Citywire. Phil S. Lee is AAA rated by Citywire for his rolling 3 year risk-adjusted performance, for the period June 2020 to February 2021.
5. Source: © 2021 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. A rating is not a recommendation to buy, sell or hold a fund. The Morningstar ‘5-star’ ratings were received by the Mirae Asset Asia Growth Equity (I USD) in the Asia ex-Japan Equity category; Mirae Asset China Growth Equity (A USD) & (I USD) and Mirae Asset China Sector Leader Equity (A USD) in the Greater China Equity category. As of 28 February 2021.

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.