Dawn Global has launched the Asian Growth Cubs Exchange Traded Fund (ETF) listed on the New York Stock Exchange (NYSE) on 17th June 2021. Cubs offers investors actively managed exposure to five large, fast growing markets, Bangladesh, Indonesia, Philippines, Vietnam, and Pakistan is another name included in the list.
Pakistan, Bangladesh, Indonesia, Philippines, Vietnam have individually grown GDP faster than 6 percent a year in USD since 2000. Meanwhile, Bangladesh and Vietnam have compounded GDP for 40 consecutive years including 2021. Yet these markets remain unapproachable to most foreign investors due to little or no ETF coverage or American Deposit Receipt listings.
According to Maurits Pot, Founder and CEO of Dawn Global, “Most emerging market investors focus in Asia on China and India, yet there is a compelling long-term secular growth story in five Asian countries with a combined population of more than 860m people, expected to grow to one billion by 2035, and with attractive demographics. The average age is 28 in these markets with a burgeoning middle class and accelerating digital adoption”.
Asian Growth Cubs ETF offers exposure to Pakistani stocks
Moreover, Dawn Global is re-inventing the conventional approach to developing markets equities investing by positioning Cubs as an actively managed, content driven, thematically designed, regionally diversified ETF.
“The passive, index-driven emerging market ETF asset class is concentrated on six countries (the BRICs2 + Korea + Taiwan) overlooking the attractive and sizeable opportunity in the next generation of emerging and frontier growth markets. The index driven market-cap weighting approach risks skewing portfolio construction to current size, not future growth potential. Instead of grouping emerging markets into a single product, we intend to give investors the option of which specific markets they have exposure to, through regionally diversified products.”
Dawn Global is of view that active investment management is required to identify the most persuasive growth companies in these markets as well as to alleviate company and governance risk.