Welcome to the new my.morningstar.com! Learn more about the changes and how our new features help your investing success.

How Did Asia Strategic-Beta ETPs Weather the Storm? (Part 1)

Strategic-beta ETP assets in the Asia-Pacific region grew at an organic growth rate of 11.9%in the in the first six months of 2020.

Jackie Choy, CFA 13.11.2020

In July, published our sixth-annual Global Guide to Strategic-Beta Exchange-Traded Products1. In the latest installment of this guide, we found that strategic-beta ETPs in the Asia-Pacific region have continued to show stronger growth in 2019 relative to more mature markets, such as the United States and Europe. In the wake of the coronavirus-driven sell-off and subsequent rebound, we will look at a fresh snapshot of the strategic-beta ETP landscape in the Asia-Pacific region. We will also examine how these products have weathered the pandemic and see what lessons investors can learn from their first-half 2020 performance.

Growth Continues but Has Been Spotty

Strategic-beta ETP assets in the Asia-Pacific region grew at an organic growth rate of 24.6% in 2019. In the in the first six months of 2020, they grew by 11.9% organically. However, growth has been spotty. Much of this recent growth was driven by China, where there have been 10 new strategic-beta ETPs listed in 2020. (Some of them launched in 2019 but had yet to report assets to our database, so they were not included in our sixth-annual guide.) These new entrants helped China-domiciled strategic-beta ETPs achieve an organic growth rate of 51.4% in the first half of 2020. Taiwan also experienced strong organic growth (64.8% in the first half of 2020), which was mostly attributable to flows into one product, Yuanta/P-Shares Taiwan Dividend Plus ETF (0056). On the other hand, the number of strategic-beta ETPs in South Korea declined to 82 from 87. Assets in South Korean strategic-beta ETPs shrank to USD 1.4 billion, as organic growth registered at negative 10.6%. Japanese strategic-beta ETPs also contributed to the overall growth of the regional market. Growth in Japan was bolstered by the Bank of Japan's ETP purchases.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Member.

Register For Free

About Author

Jackie Choy, CFA  Jackie Choy, CFA is the Director of ETF Research for Morningstar Investment Management Asia

Audience Confirmation


By clicking "accept" I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See "Cookie Consent" for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All Rights Reserved.      Terms of Useund      Privacy Policy.
© Copyright 2020 Morningstar Asia Ltd. All rights reserved.

Terms of Use        Privacy Policy        Cookies