Nasdaq Aligns with BMO and Local Market Participants to Launch Two ETFs on Hong Kong Exchange

Nasdaq recently announced two of its indexes are the basis for ETFs recently launched by BMO on the Hong Kong Stock Exchange. The BMO Hong Kong Banks ETF (Stock Code: 3143) tracks the Nasdaq Hong Kong Banks Index, and the BMO Asia High Dividend ETF (Stock Code: 3145) tracks the Nasdaq Asia ex-Japan Dividend Achievers Index.

The BMO Asia High Dividend ETF launch is the latest example of continued innovation around the Nasdaq Dividend Achievers family.

“This milestone for our index business in Asia Pacific is due to our close collaboration with local asset managers, exchanges and other local participants, who understand investor demand and the local environment. This allows us to offer consumers new opportunities for their investment portfolios," Rob Hughes, Nasdaq head of Index Services, said.

In 2013, the Guotai NASDAQ-100 Exchange Traded Fund, the first-ever ETF in China based on a U.S. Index, listed in Shanghai, , along with similar ETFs in Korea, India and Japan – all tracking the NASDAQ-100, one of the most liquid, most followed indexes in the world. Over the past year, additional ETFs – based on Nasdaq Indexes - have launched in Asia, including The Mirae Asset Tiger Nasdaq BIO ETF (KRX: Ticker 203780), based on the Nasdaq Biotechnology Index, which launched earlier this year on the Korean Exchange.

“We have been honored to work with fantastic firms all around Asia to bring innovative products to market, and we expect to continue bringing more ETF-related opportunities to Asia, based on the Nasdaq Index Families, such as Dividend Achievers, Biotech, Semiconductor and other indexes that can provide opportunities for Asia-based investors,” Hughes said.

Nasdaq’s Global Index Group offers comprehensive index services, including design, calculation, administration, licensing, research, global visibility, data distribution and exchange-traded product (ETP) listing and licensing. Currently, there are more than 150 ETPs with $100 Billion in AUM tracking some of Nasdaq’s 41,000 Indexes.

Nasdaq’s Global Buyback Achievers™ Index is the basis for InvescoPowershares’ most recent ETF launch – the PowerShares Global Buyback Achievers UCITS ETF (symbol: BUYB). This marks the first product based on the successful Nasdaq Buyback AchieversTM Index family to launch in the UK and Europe.

“Nasdaq is proud to team with InvescoPowershares again to launch a product based on one of our most successful franchises,” said Rob Hughes, head of Index Services at Nasdaq. “Smart Beta indexes, and products linked to them, have provided more opportunities for investors to manage risk and diversify their portfolios. The Buyback concept has proven successful in identifying companies that have - through the use of share buybacks - delivered increased shareholder value and outperformance over the broader market.”

The launch is the latest example of continued innovation around the Nasdaq Buyback Achievers family. In May, InvescoPowershares launched the international version of this Index as an ETF in the US, The Powershares Nasdaq International Buyback Achievers Index ETF (symbol: IPKW).
The Nasdaq Global Buyback Achievers™ Index is comprised of securities from the Nasdaq US Buyback Achievers™ Index and the Nasdaq International BuyBack Achievers™ Index. The Nasdaq US Buyback Achievers Index is comprised of corporations that have effected a net reduction in shares outstanding of 5% or more in the trailing twelve months and the Nasdaq International BuyBack Achievers Index is comprised of corporations that have effected a net reduction in shares outstanding of 5% or more in its latest fiscal year. The Index began on August 11, 2014 at a base value of 1,000.00.
For more information, contact Rob Hughes, Nasdaq Global Indexes, +1 212 231 5836.
 

The PowerShares BuyBack Achievers Portfolio (PKW) has been one of the best performing ETFs on the market, writes Jordan Wathen for The Motley Fool.

According to ETF Trends, year-to-date, the ETF has gained 15.7% compared to the 11.7% increase in the S&P 500. Stock components in the Powershares ETF are slightly less volatile than the S&P 500, and the ETF has consistently beaten the broad index.

PKW tries to reflect the performance of the NASDAQ Buyback Achievers Index (DRB), which is comprised of stocks that have repurchased at least 5% of their total shares outstanding over the past year and is weighted by market cap.

Read more from ETF Trends.

Read more about the DRB here.