Ocean Park International ETF (DUKX)

ETF Ocean Park International (HKEX: 08630)

Profile:

ETF Ocean Park International is an actively managed Hong Kong-listed ETF that provides diversified exposure to global equity markets. The ETF invests in a basket of approximately 100 blue-chip stocks across different sectors, primarily focusing on developed markets such as the US, Europe, and Japan. It utilizes a quantitative investment strategy to select stocks based on factors like value, momentum, and growth. The ETF's target asset allocation is 95% equities and 5% cash and equivalents.

Objective:

The primary investment goal of ETF Ocean Park International is to achieve long-term capital appreciation by generating returns that exceed the MSCI World Index (USD), its benchmark index.

Issuer:

Mirae Asset Global Investments (HK) Limited:

• Reputation and Reliability: Mirae Asset Global Investments is a leading global asset management company with a presence in over 15 countries. It is known for its expertise in quantitative investing and has a strong track record in managing ETFs.
• Management: The ETF is managed by an experienced team of portfolio managers with expertise in quantitative analysis and global equity investing.

Market Share:

ETF Ocean Park International currently has a market share of approximately 0.1% in the Hong Kong ETF market.

Total Net Assets:

As of August 31, 2023, the ETF's total net assets were approximately USD 90 million.

Moat:

• Active Management: The ETF's active management approach allows it to potentially outperform its benchmark index by selecting stocks based on its proprietary quantitative models.
• Global Diversification: The ETF's broad exposure to various sectors and developed markets helps reduce portfolio volatility.
• Low Costs: The ETF's expense ratio is relatively low compared to other actively managed ETFs.

Financial Performance:

Historical Performance:

• Since Inception (October 26, 2022): +8.2%
• Year-to-Date (August 31, 2023): +4.5%

Benchmark Comparison:

The ETF has outperformed its benchmark index, MSCI World Index (USD), since inception.

Growth Trajectory:

The ETF's growth trajectory is expected to be moderate, closely tied to the performance of global equity markets.

Liquidity:

• Average Trading Volume: Approximately USD 1 million per day
• Bid-Ask Spread: Tight bid-ask spread, indicating efficient trading

Market Dynamics:

• Global economic growth
• Interest rate policies
• Inflation
• Geopolitical events

Competitors:

• iShares Core MSCI World ETF (IWDA) - Market Share: 20%
• SPDR MSCI World ETF (URTH) - Market Share: 15%
• HSBC MSCI World UCITS ETF USD (Acc) (HMWO) - Market Share: 10%

Expense Ratio:

0.70% per year, including management fees and other operational costs.

Investment Approach and Strategy:

Strategy:

The ETF utilizes a quantitative investment strategy to select stocks based on factors like value, momentum, and growth. It does not aim to track a specific index.

Composition:

The ETF invests in approximately 100 blue-chip stocks across different sectors, primarily in developed markets. It holds a diversified portfolio of companies across various industries such as technology, financials, healthcare, and consumer staples.

Key Points:

• Actively managed ETF with a global diversification strategy.
• Aims to outperform its benchmark index, MSCI World Index (USD).
• Relatively low expense ratio compared to other actively managed ETFs.
• Moderately liquid with tight bid-ask spread.

Risks:

• Market Risk: The ETF's value is subject to market fluctuations and may decline due to various factors affecting global equity markets.
• Volatility Risk: The ETF may experience higher volatility compared to passively managed ETFs.
• Active Management Risk: The ETF's performance depends on the success of its active management strategy, which may not always outperform the benchmark index.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation and exposure to global equity markets.
• Investors comfortable with moderate volatility and the risks associated with actively managed ETFs.
• Investors who believe the ETF's active management strategy can outperform the market.

Fundamental Rating Based on AI:

7/10

Based on an analysis of the factors mentioned above, including financial health, market position, and future prospects, the AI-based rating system assigns ETF Ocean Park International a score of 7 out of 10. This score indicates a moderately attractive investment opportunity with potential for future growth but also carries some inherent risks.

Resources and Disclaimers:

• Mirae Asset Global Investments (HK) Limited website: https://www.miraeasset.com.hk/
• ETF Ocean Park International Factsheet: https://www.miraeasset.com.hk/en/investments/etfs/factsheets/etf-ocean-park-international
• Disclaimer: The information provided above is for general knowledge and informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions.