Hang Seng active ETF posts gains on debut

Hong Kong’s first US equity income-themed active exchange-traded fund inched up 0.7 percent in its trading debut on Wednesday.

The Hang Seng JPMorgan US Equity Premium Income Active ETF (3476) closed 0.67 percent higher at HK$15.10, with a turnover of HK$3.59 million.

It was priced at HK$15 per unit, with a board lot of 500 units.

The ETF adopts the strategy of the world’s largest active ETF, building a US equity portfolio through a bottom-up, fundamental approach, while enhancing income by selling index call options, according to Hang Seng Investment Management.

The management firm said the fund also employs a distribution smoothing mechanism to deliver stable monthly payouts, even in volatile markets.

HSVM chief executive Rosita Lee Pui-shan said the launch marks the firm’s first active ETF, reinforcing its push to grow Hong Kong’s ETF market.

JP Morgan Asset Management said active ETFs have become a US$1.3 trillion (HK$10.14 trillion) global market, growing at 43 percent annually over the past decade.

CICI CAO