Global X today listed the Global X Hang Seng High Dividend Yield Enhanced Income ETF on the Hong Kong Stock Exchange, marking the city's first active ETF of its kind. The product is designed to reference the Hang Seng High Dividend Yield Index while employing an active management strategy.

Global X's Vice President of ETF Business Development, Wu Yiting, noted that Hong Kong's ETF market has seen inflows concentrated in two primary categories this year: leveraged and inverse products, and high-dividend stock-related products. She believes high-dividend offerings appeal to investors due to their stable returns, making them a popular choice.

The ETF, launched by Mirae Asset (Hong Kong), targets monthly distributions. Its total return is derived from a combination of option premiums, stock dividends, and capital gains, with payouts generated jointly by the underlying equities' dividends and the premiums earned from options written each month.

Trading is available in three currency counters: Hong Kong dollars (03555), US dollars (41555), and offshore RMB (83555). The fund carries a recurring expense ratio of 0.75% per annum. Each board lot consists of 100 shares, with the entry fee for the HKD counter set at HK$800.

Wu Yiting also revealed that the product is aimed primarily at Hong Kong-based investors. She added that there remains scope for Global X to roll out additional ETFs during the remainder of the year.