SINGAPORE & NEW YORK–The futures contracts are based on the recently launched ICE Asia Tech 30 Index (ICEAT30), which provides investors with the ability to capture the performance of the 30 largest technology and tech-related companies listed on selected Asia-Pacific exchanges.
Each Asia Tech 30 Index Futures contract is micro-sized at around USD $10,000, allowing market participants to precisely scale their exposure. The 30 companies which are currently part of the index are listed in full here, with approximate country allocations as of the last quarterly reconstitution as follows: China 37.40%, Japan 24.67%, South Korea 19.15%, and Taiwan 18.78%. The index constituents are reviewed quarterly.
The index has returned an annualized gross total return of approximately 13.8% from its base date of March 19, 2010 to April 9, 2021. The full historical index performance, based upon back tested index calculations, can be accessed via the ICE Index Platform.
The methodology for the index is publicly available here and provides details on constituent selections, weightings, calculations, and reconstitutions. The index is denominated in U.S. Dollars and published in real-time to ICE’s Consolidated Feed, ICE’s primary market data source for equity real-time and closing prices.
“The Asia-Pacific technology sector is an exciting space for investors and these micro futures contracts provide the ability to invest in the largest and most important of Asia’s tech firms through one single futures contract,” said Lucas Schmeddes, President of ICE Futures Singapore. “Over the last few months, tech companies in the region have fully benefited from the digital acceleration: from blue chip conglomerates such as Samsung, to emerging e-commerce platforms such as Meituan.”
“The new index is designed around the concept of today’s modern technology landscape, including highly capitalized and liquid companies across both the technology and tech-related sectors,” said Phil Galdi, Head of Indices at ICE. “The index is constructed on the basis of our ICE Uniform Sector Classification Schema, and its rules-based approach to selecting and weighting companies offers an incredibly efficient benchmark for investors to track the returns of this rapidly growing space.”
The Micro Asia Tech 30 Index Futures contracts will trade alongside other contracts on ICE Futures Singapore which include Bakkt® Bitcoin Futures, as well as cash settled Mini Brent Crude, Mini US Dollar Index®, Mini US Dollar/Offshore Renminbi, and Mini US Dollar/Singapore Dollar futures.
ICE offers over 6,000 indices which serve as performance benchmarks for over $1 trillion in assets managed by investors around the world. ICE is home to the NYSE FANG+™ Index, an index that provides exposure to 10 of today’s highly-traded tech giants, with NYSE FANG+™ futures and options contracts to help the market increase or reduce exposure to a key group of growth stocks in a capital-efficient manner.
