Mirae Asset Global Investments lists Autonomous and Electric Vehicles ETF via its thematic investment brand Global X in Hong Kong
In the first quarter of 2021, global electric vehicle sales rose by around 140%, according to the recent “Global EV Outlook 2021”, conducted and published by the International Energy Agency. This massive surge in demand is driven by more than 500,000 electric vehicles sold in China alone.[1] Building on that demand, Mirae Asset Global Investments (Hong Kong) Limited issued an ETF via its thematic investment brand, Global X ETFs, giving investors seamless access to the performance of both electric vehicle companies and firms involved in the development of autonomous driving. The Global X Autonomous and Electric Vehicles ETF (stock code: 02849) started trading on December 10th on the Hong Kong Stock Exchange and tracks the Solactive Autonomous & Electric Vehicles Index, which is the first index in Hong Kong to utilize Solactive’s proprietary Natural Language Processing Engine ARTIS®. Moreover, it is the third time that Mirae Asset has utilized this index as an underlying for ETFs, after the inception of two successful ETF listings in the US and Korea.
The Middle Kingdom serves as one of the main drivers of both global EV production and market, and this trend could corroborate as governments around the globe incentivize the effort towards reaching climate goals.[2] The development of electric vehicles shares plenty of synergies with autonomous driving, which is why Global X ETFs decided to also include this mobility trend in their thematic ETF. Autonomous driving technology is categorized into six levels from level 0 containing no driving automation of any kind to full driving automation requiring no human attention in level 5. It is expected that by 2030, many new cars sold will contain level 4 automation, hinting this development to be a vast growth potential for investors who believe in a mobile and driverless future. The Solactive Autonomous & Electric Vehicles Index seeks to include companies in both the EV and autonomous driving sectors, giving investors exposure to both streams in the future of automobiles.
Eligible companies must have their primary listing in one of the countries that are part of the Developed Markets[3], South Korea or Taiwan. Furthermore, companies must be active in at least one of the following industries: Electric Vehicles (“EV”), Electric Vehicle Components (“EVC”), and Autonomous Vehicle Technology (“AVT”). Solactive’s proprietary Natural Language Processing Engine ARTIS® is utilizing advanced algorithms to parse high volumes of public documents evaluating companies’ exposure to the Electric Vehicles (“EV”), Electric Vehicle Components (“EVC”), or Autonomous Vehicle Technologies (“AVT”) segments described above. The sophisticated procedure not only detects potential index constituents considering a firm’s exposure to a theme but also ranks its importance to the very subject or industry.
“Automotive technology has come a long way in a short time. I remember my first car – a Smart – which was, back then, considered very practical and thought-through. Compared to the level of comfort and safety, which the automobile industry is and will be delivering to its clients in the future, the technology of my first car seems antique,” commented Timo Pfeiffer, Chief Markets Officer at Solactive. We are very pleased that Mirae Asset has chosen to collaborate with us again as their business partner for this ETF that cocoons the potential to deliver added value to investors for years to come.”
Jung Ho Rhee, Chief Executive Officer at Mirae Asset Global Investments (Hong Kong) Limited, said: “Continued advancements in autonomous and electric vehicles has enhanced technological competitiveness between key market players. We are pleased to partner with Solactive again to launch the Global X Autonomous and Electric Vehicles ETF, which offers investors exposure to the entire supply chain from lithium batteries to sensors, which are transforming the global autonomous and electric vehicle market.”
[1] https://www.iea.org/reports/global-ev-outlook-2021?mode=overview
[2] Ibid.
[3] as defined by the Solactive Country Classification https://www.solactive.com/wp-content/uploads/2020/12/Solactive-Country-Classification-Framework-v1.2_2020.pdf