The new asian NASDAQ
The Hang Seng Tech index, a game changer for investors
Most investors are familiar with the NASDAQ composite index, a stock market index which is one of the three most-followed stock market indices in the United States and known to be high-tech and growth-oriented. However, you might not be familiar with the Hang Seng Tech index, Hong Kong’s new technology-focused stock index.
A new index for investors: the Hang Seng Tech index
With the Asian tech sector rivaling the American one, lots of investors wanted to invest in it but were hesitant due to a lack of available ETFs, meaning they would have had to buy individual shares of each company, leading to excessively high fees.
Now, it is finally possible due to the creation of a new index: the Hang Seng Tech index. Launched on the 27th of July 2020, this new index is composed of 30 stocks listed in Hong Kong in the internet and information technology businesses and includes heavyweight Chinese tech giants such as Tencent, Alibaba and Meituan.
Performance
According to CNBC, the new tech index would have returns of 36.2% for 2019 and 45.5% as of July 17. That compares to 10.95% and -2.44% respectively for the main Hang Seng index.
With such returns and US tech stocks looking more and more overvalued, the HSTI looks like a valid alternative to the NASDAQ for investors which are looking to invest in the Asian tech sector.
ETFs available
The best way to invest in the HSTI now is Blackrock’s new iShares, the iShares Hang Seng TECH ETF. The management fees are relatively low at 0.25% and it is available in both HKD and USD.
I hope you enjoyed this article!
Feel free to comment what you think of the Hang Seng Tech index and if you believe it is a valid alternative to the NASDAQ.
Also, don’t forget to connect on LinkedIn!
