SGX welcomes listing of ETF linked to the future of sustainable mobility
Nikko Asset Management and Straits Trading Company partner to offer first China electric vehicles ETF on SGX.
Singapore Exchange (SGX) has welcomed the listing of the NikkoAM-StraitsTrading MSCI China Electric Vehicles and Future Mobility ETF, offering investors access to the largest market of one of the world’s fast-growing industries.
With assets under management of SGD45.4 million, the ETF tracks the MSCI China All Shares IMI Future Mobility Top 50 Index, which represents the 50 largest, multi-country listed Chinese companies that are expected to derive significant revenues from energy storage technologies, electric and autonomous vehicles, shared mobility and new transportation methods.
This is the first SGX-listed ETF benchmarked to the fast-growing electric vehicles (EV) sector that is projected to more than triple to US$800 billion by 2027. China is the largest EV market globally in terms of both production and sales, and is expected to continue to lead into the next decade.
Michael Syn, Head of Equities at SGX, said, “Long-term, structural trends within China, fueled by the powerful combination of technology and sustainability, can drive significant growth potential for this ETF. We have enjoyed many successful partnerships with Nikko Asset Management across asset classes, and this ETF further draws on our collective strengths to offer innovative and efficient solutions for investors.”
Eleanor Seet, President and Head of Asia ex-Japan, Nikko Asset Management, said, “We are exhilarated to be breaking new ground with the listing of this newest addition to our ETF solutions in a thematic asset class that is key to China achieving its carbon neutral goals by 2060. Electric vehicles and future mobility solutions will change our world and lives indelibly, help make our future more sustainable, making this a compelling investment for investors globally to consider.”
With this latest addition, SGX now lists 36 ETFs across multiple asset classes and thematic sectors with total managed assets of more than S$12.55 billion, representing an increase of almost 50% year-on-year. This ETF is the second one jointly developed by Nikko Asset Management with the Straits Trading Company. The partnership’s first ETF, NikkoAM-StraitsTrading Asia ex-Japan REIT ETF, was the world’s first Asia ex-Japan REIT ETF and remains the largest REIT ETF in Singapore.