Fubon Fund Management Launches the First Ever Multi Asset ETF Including Commodities in Hong Kong, Tracking the Solactive Core Diversified Multi Asset Index
Fubon Fund Management has launched an innovative investment solution, the Fubon Solactive Core Diversified Multi Asset Index ETF, which tracks the Solactive Core Diversified Multi Asset Index. This ETF offers investors a cost-effective, diversified approach to access multiple asset classes, including equities, fixed income, and commodities (with spot virtual assets being eligible for inclusion), across both developed and emerging markets.
In light of the uncertain global political landscape and evolving macroeconomic conditions, both advisors and investors are increasingly recognizing the significance of multi-asset portfolios. According to an industry survey, 25% of the respondents expressed interest in multi-asset ETFs with only a handful of ETF issuers offering these products[1]. Diversified multi-asset solutions have become progressively valuable as investing in uncorrelated asset classes can improve the risk-return profile, allowing investors to achieve more efficient market participation while minimizing volatility. The Fubon Solactive Core Diversified Multi Asset Index ETF addresses the demand for balanced investment products, enabling investors to broaden exposure while managing risk.
The Solactive Core Diversified Multi Asset Index is designed to reflect a strategic allocation across various asset classes and regions. Composed of ETFs, the index maintains a structured balance with 50% in fixed-income, 30% in equity, and 20% in commodity (with spot virtual assets being eligible for inclusion) and real estate. The selection process is fully rule-based, ensuring that only the largest and most liquid ETFs per asset category are included, creating a transparent and systematic exposure. Rebalanced semi-annually, the index aims to allow investors to effectively capture market returns by realigning to the predetermined asset allocation and avoid prolonged overconcentration.
The ETF listed on 29th November on the Hong Kong Stock Exchange with code 3427.HK.
Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “After our successful collaboration with Fubon in Taiwan, we are delighted to partner with Fubon Fund Management in Hong Kong as well, introducing a product that aligns with investors’ increasing demand for balanced, multi-asset exposures. The Solactive Core Diversified Multi Asset Index embodies our commitment to delivering precise and adaptable index solutions that address the diverse needs of our clients.”
Hsin Yi LIN, General Manager at Fubon Asset Management Co., Ltd., commented: “We are delighted to introduce the Fubon Solactive Core Diversified Multi Asset Index ETF (3427.HK) to the Hong Kong market in collaboration with Solactive. We believe the Fubon Solactive Core Diversified Multi Asset Index ETF will offer investors opportunities to benefit from diversified exposure across various asset classes, thereby enhancing investment prospects within the dynamic Hong Kong market. Looking ahead, we are eager to expand our ETF offerings in partnership with Solactive and solidify our presence in the ETF market.”
[1] Multi-Asset Funds Fuel the Next Evolution of ETFs, August 06, 2024