Who are the best ETF providers in Asia?

The Asset announces winners of The Asset Triple A Asia ETF Awards 2018

As an element of the Asian financial market, exchange-traded funds (ETFs)  have seen a dramatic growth over the past few years. As of end June, the Asia-Pacific ETF market was estimated to have US$478 billion of assets under management (AUM), triple its size compared to five years ago.

But there is still a lot of room for growth as currently, the ETF market in Asia is centered in Japan with US$309 billion allocated to Japan ETFs. Investors in the rest of Asia are starting to uncover what is behind the surging activity.

In Asia, ETF investors are looking for more customized solutions for diversification or hedging purposes. This requires ETF providers to work more closely with investors, index providers and asset managers.

“Instead of just tracking major indices, investor-demand for ETFs is becoming more diversified,” says David Lai, partner, co-chief investment officer at Premia Partners. “There are a lot of new investment themes and investors need more ETFs to capture these themes in a more systematic way.”

The opening of China’s capital markets are also presenting opportunities for Asian ETF providers. As Chinese equity and domestic bond markets were both included in major global indexes, new ETFs with exposure to these assets are becoming investment channels for overseas investors.

“China access has always been a key pain point for many investors given that it is the second largest economy in the world today,” says Cindy Chen, head of securities services at Citi. “Naturally in China, when you talk about AI, innovation, and technology, for example, these are important sectors to get into using ETFs.”

Asset owners and private banks in Asia are using ETFs for asset allocation and as a means of implementing some tactical strategies for their clients’ portfolios. It is in this context that The Asset announces the winners of The Asset Triple A Asia ETF Awards 2018.

Recognized as the Best ETF Provider, Asia, is Yuanta Securities Investment Trust. Yuanta has been promoting and developing the ETF market, not only in its home market of Taiwan but also in the rest of the region. This is the second time that Yuanta has won this award. Yuanta was also recognized as Best ETF Provider, Taiwan.

Jane Street was recognized as the Best ETF market maker in Asia. In 2017, Jane Street traded trillions in US dollars worth of ETFs and actively priced thousands of exchange-traded listings across different countries.

Honored as the Best ETF Broker, Asia, is DBS Vickers Securities. DBS Vickers has been a very important component of the ETF ecosystem in Asia.

The Tokyo Stock Exchange was recognized as the Best ETF Exchange. The Exchange has continued to promote the importance of ETFs as a principal product among its extensive suite of financial products.

Recognized as the Best Index Provider for ETFs, Asia, is S&P Dow Jones whose indices continued to be the basis for many ETFs launched in the region.

Citi was recognized as the Best ETF Custodian, Asia for being the dominant custodian for ETF providers in the region.

 

For a complete list of winners, please click here.