Intercontinental Exchange, Inc
/

Thematic, Climate and ESG ETFs Drive Expansion in ICE’s Asian Index Business

1210 views

HONG KONG– Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, today announced strong 2021 growth in assets under management (AUM) for thematic, climate and Environmental, Social and Governance (ESG) ETFs listed on Asian exchanges using ICE’s indices as benchmarks. This growth was driven by a record number of issuers selecting ICE Indices for new ETFs in growing Asian markets, including Hong Kong, India, South Korea, Taiwan and Thailand.

Since 2018, AUM for ETFs listed on Asian exchanges tracking ICE’s indices has nearly quadrupled, totaling $17.1 billion at the end of 2021. Much of that growth came from the launch of 11 new thematic, climate and ESG ETFs in 2021, which quickly accumulated over $1.72 billion in AUM by the end of the year. Thematic indices and the ETFs that track them connect disruptive macro-level trends with underlying instruments, such as sustainable energy, electric vehicles (EV) or the semiconductor industry. Climate and ESG indices and the ETFs that track them support the growing demand among asset owners for investment strategies that reflect decarbonization and broader ESG goals.

“Although AUM benchmarked to our traditional fixed income and equity indices continues to grow, thematic, climate and ESG ETFs have become an important driver for our Asian index business,” said Magnus Cattan, Head of ICE Fixed Income & Data Services, Asia Pacific. “Investments in ETFs representing the EV and semiconductor sectors played a major part in our growth, and the launch of two new ETFs late in the year that are benchmarked to indices on ICE’s global carbon futures markets was an important development in expanding investor access to environmental markets.”

“We continue to leverage and build on our core index business to launch exciting products that achieve our goal of connecting customers and investors to opportunity,” said Amanda Hindlian, President of Fixed Income and Data Services at ICE. “Our thematic indices offer targeted benchmarks that can bring more diversity to portfolios, and in many cases, investment returns that outperform traditional markets.”

Below is a list of thematic, climate and ESG ETFs and associated indices that launched in Asia in 2021:

CountryETF NameIndex
Hong KongSamsung NYSE FANG+ ETFNYSE FANG+ Index
IndiaMirae Asset NYSE FANG+ ETFNYSE FANG+ Index
KoreaKODEX Europe Carbon Allowance Futures ICE ETF(H)ICE EUA Carbon Futures Index
KoreaNH-Amundi HANARO Global Carbon Futures ETFICE Global Carbon Futures Index
TaiwanCathay Global Autonomous & Electric Vehicles ETFICE FactSet Global Autonomous and Electric Vehicles Index
TaiwanCTBC Taiwan ESG Leading Semiconductor ETFICE FactSet Taiwan ESG Leading Semiconductor Index
TaiwanFubon ICE FactSet Taiwan Core Semiconductor ETFICE FactSet Taiwan Core Semiconductor Index
TaiwanFubon Genomics and immune Biopha ETFNYSE FactSet Global Genomics and Immuno Biopharma Index
TaiwanSinoPac US Tech Breakthrough ETFNYSE FactSet U.S. Tech Breakthrough Index
TaiwanCTBC 15+ Year Developed Markets US Corporate Best-in-Class ESG Bond ETFICE 15+ Year Ultra Large Cap Developed Markets US Corporate Best-in-Class ESG Index
TaiwanCTBC 15+ Year Large Cap USD Emerging Markets External Sovereign Carbon Reduction ETFICE15+ Year Large Cap USD Emerging Markets External Sovereign Carbon Reduction Index
ThailandKKP Semiconductor Fund – HedgedICE Semiconductor Index

ICE offers a suite of over 5,000 global equity, fixed income, commodity and foreign exchange indices, and supports all aspects of the benchmarking and performance measurement process. Dedicated to innovation and flexibility, ICE offers a wide range of benchmarks and customized solutions to address the changing needs of index stakeholders globally.

For more information on ICE Data Indices, LLC, please visit www.theice.com/market-data/indices.

About Intercontinental Exchange

Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks to connect people to opportunity. We provide financial technology and data services across major asset classes that offer our customers access to mission-critical workflow tools that increase transparency and operational efficiencies. We operate exchanges, including the New York Stock Exchange, and clearing houses that help people invest, raise capital and manage risk across multiple asset classes. Our comprehensive fixed income data services and execution capabilities provide information, analytics and platforms that help our customers capitalize on opportunities and operate more efficiently. At ICE Mortgage Technology, we are transforming and digitizing the U.S. residential mortgage process, from consumer engagement through loan registration. Together, we transform, streamline and automate industries to connect our customers to opportunity.

Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located here. FactSet® is a trademark of FactSet Research Systems, Inc. and/or its affiliates and used under license. Other products, services, or company names mentioned herein are the property of, and may be the service mark or trademark of, their respective owners. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).”

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 — Statements in this press release regarding ICE’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE’s Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC on February 4, 2021.

SOURCE: Intercontinental Exchange

Leave a Reply

Your email address will not be published.