Nikko Asset Management (Nikko AM) and the Times Straits Company have launched on the Singapore Exchange (SGX) 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 S$45.4 million (US$33.66 million), the exchange-traded fund (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, autonomous and electric vehicles (EVs), shared mobility and new transportation methods.
This is the first SGX-listed ETF benchmarked to the fast-growing EV sector that is projected to more than triple to US$800 billion by 2027, according to Allied Market Research conducted in April 2020. China is the largest EV market globally in terms of both production and sales, and it is expected to continue to lead into the next decade.
“Long-term, structural trends within China, fuelled by the powerful combination of technology and sustainability, can drive significant growth potential for this ETF,” says Michael Syn, head of equities at SGX.
Eleanor Seet, president and head of Asia ex-Japan, Nikko AM, adds: “Electric vehicles and future mobility solutions will change our world and lives indelibly and help make our future more sustainable, making this a compelling investment for investors globally to consider.”