Nikko Asset Management (Nikko AM), on Dec 15, launched the Nikko-AM StraitsTrading MSCI China Electric Vehicles and Mobility ETF, making this the first such ETF – or exchange-traded fund – in Singapore.

This is also the second ETF developed jointly between Nikko AM and the Straits Trading Company.

The ETF aims to achieve long-term capital growth by replicating the returns of the MSCI China All Shares IMI Future Mobility Top 50 Index.

In addition, the ETF offers investors to access that future mobility – of which electric vehicles is a major component – presents. As at 2020, the global electric vehicle industry is worth US$250 billion ($342.19 billion) as at 2020. Its worth is projected to more than triple by 2027, according to Allied Market Research.

The MSCI China All Shares IMI Future Mobility Top 50 Index tracks the performance of Chinese companies that are expected to derive significant revenues from energy storage technologies (including electric vehicles), autonomous vehicles, shared mobility and new transportation methods.

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These Chinese companies are listed in US, Hong Kong and China, and also other markets from time to time.

As at October 2021, the MSCI China All Shares IMI Future Mobility Top 50 Index has delivered net annualized returns of 44.1% since May 2018.

China is currently the market leader in the production and sale of electric vehicles and is expected to continue the lead into the next decade.

“This is an exciting opportunity to tap into mobility innovations that will change our lives. There is an accelerating momentum in the acceptance of sustainable mobility not only amongst governments and cities; consumer mindsets and behaviours globally are shifting to propel the electric vehicles and future mobility sector forward at an electrifying speed,” says Eleanor Seet, head of Asia ex-Japan at Nikko AM.

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“The NikkoAM-StraitsTrading MSCI China Electric Vehicles and Future Mobility ETF provides access to a theme that is relevant to both institutional and individual investors,” Seet adds.

“The launch of a second ETF with Nikko AM signals the strong partnership between our companies and we look forward to further collaboration in the future,” shares Chew Gek Khim, chairman of Straits Trading Company.

The Nikko-AM StraitsTrading MSCI China Electric Vehicles and Mobility ETF will list on the Singapore Exchange (SGX) on Jan 20, 2022.

The ETF’s initial offer period will be from Jan 3 to 14, 2022.

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