UBS AM eyes up robotics and automation firms with new China technology ETF launch
The new ETF will invest in a mix of traditional and disruptive technology firms
UBS Asset Management has launched a currency-hedged UCITS ETF offering investors access to the burgeoning Chinese technology sector.
The UBS ETF (LU) Solactive China Technology UCITS ETF aims to invest in the 100 largest "technology-driven" companies headquartered in mainland China, including firms which "derive the majority of their revenues" from technology-related businesses, along with traditional technology firms.
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As well as traditional and health technology firms, the ETF will provide exposure to genomics, robotics and automation, cybersecurity, digital entertainment, cloud computing, future cars, blockchain and social media.
Onshore and offshore firms, along with foreign listings of companies will be eligible for the index, provided they are headquartered or incorporated in China. Only A-shares trading through Stock Connect are eligible for inclusion.
Tracking the Solactive China Technology index, the ETF will be available to investors for a fee of 0.47% for a USD denominated share class, or 0.52% for the EUR-hedged share class.
Clemens Reuter, global head of ETF and index fund client coverage at UBS AM, said: "We have had a presence in China for several decades and have built deep expertise in the country. This new ETF is part of UBS AM's strategic focus to provide investors with innovative exposure to one of the world's fastest growing markets.
"The fund incorporates stocks beyond 'traditional tech', including exposure to areas such as social media, future mobility or medical technologies companies, and shows our strength to create products that align client interest and China's long-term economic trends."
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Timo Pfeiffer, chief markets officer at Solactive, added: "China's innovation potential is driven by the country's ambition to become the number one in virtually any discipline. This aspiration bears immense growth potential, which investors can now easily access through UBS Asset Management's new China Technology ETF."
Gloss