Premia Partners, one of Hong Kong’s few independent ETF shops, is listing Vietnam and US floaties trackers, aimed at tapping in to Asian investors’ growing appetite for ETFs.
Premia MSCI Vietnam ETF (2804, 9804)
Premia US Treasury Floating Rate ETF (3077, 9077)
The Vietnam tracker is the first of its kind in Asia. It aims to tap into the tearaway performance that Vietnamese companies have delivered the past five years. It also comes at a good time: thanks to Donald Trump’s trade war with China, multi-nationals like Nintendo are moving their assembly plants to Vietnam, further accentuating the “Vietnamese miracle”. The fund charges 0.75%.
The floaty fund tracks an index of US Treasuries with less than 1 week duration. It aims to provide a tax work around for Asian investors. Many Asian investors can buy floating rate ETFs on US exchanges. But doing so requires paying US withholding taxes, as the funds are US-domiciled. By domiciling a floaty tracker in Hong Kong, Asian investors can get around US tax.
David Lai, Partner and CIO of Premia Partners. Source: Supplied.