US ETF issuer Global X has unveiled its FTSE Asean 40 fund on the New York Stock Exchange, investing across Singapore, Malaysia, Indonesia, Thailand and the Philippines.
Global X says its fund is the first US-listed ETF to target the Association of Southeast Asian Nations (Asean) and looks to benefit from ongoing economic integration in the region.
A planned cross-border trading platform between the Singapore, Malaysia, Thailand and the Philippines stock exchanges is slated for 2011, and there has already been a 111% rise in the number of merger and acquisition deals being carried out between Asean companies.
The region has seen considerable growth recently and has a market capitalization of $1.75m, making the combined grouping larger than either India or Brazil.
Global X CEO Bruno del Ama says: "This is one of the most dynamic regions in the world with accelerating consumer demand that should develop a middle class of about 300 million people by 2015."
In addition, Global X will be hoping its launch profits from Asean's close relationship with China, with which it has developed the Asean-China Free Trade Area. Exports from the Asean region to China increased nearly 45% in 2010.
The underlying FTSE index comprises 40 companies and is heavily weighted toward Singapore, at 41.19%, and Malaysia, at 32.82%, while the Philippines makes up just 0.61%. It is trading with a total expense ratio of 0.65%.
Appetite has suffered since Brexit vote
'Failure to pay attention can result in enforcement'
200,000 LISAs opened so far
From June 2019
11 years since launch of three Chartered titles