iShares, the worldâs largest ETF sponsor, filed paperwork with
the Securities and Exchange Commission to bring to market the first
ETF to cast a wide net over Asiaâs information technology
The new fund, the iShares MSCI All Country Asia Information
Technology Index Fund, is based on an underlying index that tracks
the combined equity performance of software and semiconductor
companies in five developed and emerging markets countries:Hong
Kong, India, Japan, South Korea and Taiwan.
The information technology sector has grown rapidly in Asia in
recent years with the stratospheric growth of multinational
companies such as India-based Infosys Technologies Limited; China
Mobile, the worldâs largest mobile phone operator; and South
Koreaâs electronic device behemoth Samsung.
However, investors are only able to directly access Asiaâs
tech firms in a limited way. According to IndexUniverseâs ETF
Classification System Web page, the only two funds that focus on
technology in general in Asia are the country-specific Global X
China Technology ETF (NYSEArca:CHIB) and the Guggenheim China
Technology Fund (NYSEArca:CQQQ). iShares also offers indirect
exposure to Asiaâs tech sector through separate individual
country funds. It has five on the market that each focus on stocks
in the five countries the new fund will include.
Some of those individual country funds have significant holdings
of information technology stocks. For example, more than half of
the iShares MSCI Taiwan Index Fund (NYSEArca:EWT) is invested in
that countryâs tech sector, but EWT and the other iShares funds
hold stocks in a broad array of industries as well.
The iShares MSCI All Country Asia Information Technology Fund
thatâs now in registration will invest at least 80 percent of its
assets in the securities of its underlying index, and will own
depository receipts to achieve its investment strategy.
The fund will employ a representative sampling indexing
strategy, meaning it wonât own all the securities in the
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