IndexIQ, a leading developer of index-based liquid alternative investment solutions, is set to launch the IQ Hong Kong Small Cap ETF (Ticker: HKK) on the NYSE Arca platform this morning, it was announced today.
HKK is the first Exchange-Traded Fund (ETF) dedicated to providing access to Hong Kong’s dynamic small-cap sector, an important component to the economic success of this “Asian Tiger.” Hong Kong has grown rapidly for many decades, supported by its position as a strategic gateway to mainland China, and by a strongly embedded free market culture. It recently was ranked #2 in the World Bank’s “Ease of Doing Business Index” 1 and has had a top ranking by the Index of Economic Freedom for the last 15 consecutive years. 2 Hong Kong currently ranks as the world 11th-largest trading entity. 3 In 2009, it was the largest center of initial public offerings (IPOs) in the world, with the IPOs listed on the country’s stock exchange accounting for 22 percent of worldwide IPO capital raised that year. 4
HKK seeks to replicate, before fees and expenses, the performance of the IQ Hong Kong Small Cap Index (IQSMHKK). The market capitalization-weighted index is intended to give investors a means of tracking the overall performance of the small capitalization sector of publicly traded companies domiciled and primarily listed on the Hong Kong Stock Exchange, the seventh largest stock exchange in the world. 5
“Hong Kong’s pro-business climate has made it one of the world’s true business hubs, the gateway to China, and a source for innovation in both finance and technology,” said Adam Patti, CEO of IndexIQ. “However, until now, most investors have had no transparent, low-cost vehicle to gain exposure to the small-cap companies that are driving a significant portion of its growth. With HKK, investors can add focused exposure to Hong Kong’s strong consumer class and overall domestic economy by investing in small cap equities.”