The GBA Innovation 100 ETFs are piling up. Southern Asset Management became the only Shenzhen-based fund manager so far to be approved to launch an ETF based on the Greater Bay Area Innovation 100 Index. Another fund manager from Beijing was approved for the same type of ETF fund today, and the two follow GF Fund Management and ICBC-Credit Suisse Fund, which obtained their approvals earlier of the month. Another 10 are awaiting approval.
The GBA Innovation 100 Index tracks companies deemed as the most “innovative” from the region, regardless of whether they are traded here or in Shanghai. The index’s Top 10 component stocks are Tencent Holdings, China Merchants Bank, Ping An, Hong Kong Stock Exchange, Gree Electric, CK Hutchison, Midea Group, CITIC Securities, CLP Holdings and China Vanke.
According to financial data provider Wind, in the 12 months to June 28, the cumulative yield of the GBA Innovation 100 Index was 18.21%, significantly higher than the cumulative yield of the Shanghai and Shenzhen 300 Index (4.33%) and the Shanghai 50 Index (14.93%). As of August 13, there were 42 funds in operation claiming to be focused on the GBA, with an accumulated fund size of RMB35.741 billion. The best performing is the Essence Fund, established in April 2014, with a return of 167.8% to date.