New ETFs: Chinese Emerging Tech, Global SaaS and Green Friendly EU ETFs

Summary:

• 33 New ETFs joined the universe were launched this last week around the world.
• Diversified ETFs across themes and regions.
• South Korea had the lion’s share with 8 new ETFs launches.
• Blackrock expands total climate equity ETFs to four.

We scanned the list for you and review three of the hottest launches of the week. Keep reading to find out all about Premia China Star50 ETF (83151 HK8351 HK), Purpose Enterprise Software UCITS ETF (SOFT) and iShares MSCI EMU Paris-Aligned Climate UCITS ETF (MPAB).

2021 ETFs Hot Launches Streak Continue

2021 is one the bBiggest yYears for ETF iInvesting as more than 200 new exchange-traded products started trading in the first six months of 2021, including 51 in June alone. July continued the trend as we capped off the final week with 33 nNewly launched ETFs, well-diverse across themes and regions.

On the West SideIn Europe, BlackRock added two more Paris-aligned climate European equity ETFs, bringing their total climate equity ETFs to four. We will shed light on MPAB, an equity ETF aligning its portfolio to the goals of the Paris Agreement to support climate action. mixing income and capital growth as part of their investor return strategy. Another thematic ETF launch is SOFT, a play on the post-covid boom ofing the Software-as-a-Service (“SaaS”) industry post-covid provided by HANanetf etf.

Heading to the EastIn Asia, Premia China STAR50 ETF aims to give investors a glimpse of China’s technological future, a risky theme given the recent Chinese crackdown on tech companies.

Here’s what you need to know about these new ETFs. 

Recent ETF launches: 83151 /3151/ 9151 HK, MPAB and SOFT

83151 HK8351 HK - PREMIA CHINA STAR50 ETF

• Launch Date: 26/07/2021 
• Provider / Issuer: Premia Partners
• AUM: RMB 195 million
• Expense Ratio: 0.58% 
• Listing Exchanges: Hong Kong 

China has become one of the leading economic and technological powerhouses and is battling for the number #1 spot with long time world leader the United States of America. To put things into perspective, China today has 40 times more companies on the Global Fortune 500 list (123) than what it had 25 years ago (3). And in the tech scene, they got to play GOD by building an “artificial sun” that ran for 101 seconds at 120 million degrees.

The Premia China Star50 passively managed ETF captures what China has become and where it’s heading by focusing on emerging Chinese leaders across strategic industries with hardcore technology, high R&D and scientific innovations.  

It is the 10th ETF in Asia-f Focused Premia Partners’ arsenal and tracks the SSE Science and Technology Innovation Board 50 Index. 8351HK is aligned with Beijing's 14th Five-Year Plan that targets the development of an innovation ecosystem for the integrated circuits industry, with IC design, manufacturing, and equipment as areas of interest.

The triple currency quoted ETF (USD/HKD/RMB) has mainly 53% exposure to the Information Technology and 13% exposure to the Healthcare. Its main holdings include SSE SCI-TECG INNOV 50 NTR (15.94%), Semiconductor Manufacturing International Corporation (8.59%) and Beijing Kingsoft Office Software (6.68%).

SOFT – Purpose Enterprise Software ESG-S UCITS ETF

• Date: 28/07/2021 
• Provider / Issuer: HANetf ETF 
• AUM: $722 M 
• Expense Ratio: 0.59% 
• Listing Exchanges: LSE, Xetra

Looking back at what transpired in the last 18 months, it seems safe to say that the Covid-19 Pandemic represents one of the most important business disruptions in recent memory.

As remote work became the new normal, it’s only natural that SaaS (Software-as-a-Service (“SaaS”) ) companies have experienced a transformational change, along with a surge in demand for their products. Valuates Reports says that the global Software as a Service (SaaS) market size is projected to reach USD 307.3 Billion by 2026, from USD 158.2 Billion in 2020, at a CAGR of 11.7% during 2020-2026.

To give investors access to this groundbreaking industry, provider HANHAN ETFetf launched SOFT, a passively managed ETF tracking the Solactive Purpose Enterprise Software ESG Screened Index NTR and focuses on Global SaaS companies which are strategically positioned to thrive in post covid era.

Its 54 constituents include development stage to Cash Cow businesses with large moat such as Adobe Inc (7.22%), Shopify (6.54%) and Salesforce (6.09%).

MPAB – iShares MSCI EMU Paris-Aligned Climate UCITS ETF

• Launch Date: 29/07/2021 
• Provider / Issuer: iShares
• AUM: $5.04 M 
• Expense Ratio: 0.15% 
• Listing Exchanges: Euronext Amsterdam

The Paris agreement is one of humanities major steppingstone to combat climate change since the Kyoto Protocol of 1997. Adopted by nearly 200 countries in the French capital on 12 December 2015, it came into force on 4 November 2016, with its main goal of limiting greenhouse gas emissions.

ESG investing is rapidly transforming from a niche to a core investment as institutional and retail personal investors become more conscious of their planet health. Major ETF providers have shifted their focus towards catering rising demands with Environmentally Responsible ESG themes, with hundreds of ETFs launched since the Paris Agreement.

In April, the world’s largest asset manager  unveiled launched the iShares S&P 500 Paris Aligned UCITS ETF (UPAB) and the iShares MSCI World Paris Aligned UCITS ETF (WPAB). The latest addition this week is MPAB, one of two ETFs launched by iShares (BlackRock) that are Paris-aligned climate European equity ETFs, bringing BlackRock’s total climate equity ETFs to four.

MPAB tracks the MSCI EMU Climate Paris-Aligned Select Index and seeks to provide investors with a return, through a combination of capital growth and income and includes holdings in large and mid-cap securities across 10 Developed Markets in the EMU.

Review 83151 HK ETF, SOFT ETF, MPAB ETF and over 7,000 others with our ETF screener.