Two exchange traded funds (ETFs) have returned over 50%, as a pair of niche indices offered stability during the COVID-19 pandemic.
According to FE Analytics, BetaShares Asia Technology Tigers had returned 60.3% and ETF Securities (ETFS) Battery Tech and Lithium had returned 56.61%, over the previous 12 months to 30 November, 2020.
The BetaShares fund tracked the Solactive Asia ex-Japan index which tracked the 50 largest technology and online retail companies that had their main area of business in Asia (apart from Japan).
Its top holdings included Samsung Electronics, Taiwan Semiconductor, Tencent, Meituan Dianping and Alibaba.
The fund offered “tactical” exposure to Asia, by targeting the sector that had benefitted from the growth of the middle class in the continent.
China comprised the majority of the sector weighting (52.6%), followed by Taiwan (20.2%), South Korea (17.4%) and India (5.1%).
The ETFS fund tracked the Solactive Battery ValueChain index, which was comprised of companies that were providers of battery storage technology and mining companies that produced metals that were primarily used for manufacturing of lithium batteries.
It provided a “thematic tilt” by focusing on the trend towards renewable energy and electronic vehicles.
Its top holdings included Galaxy Resources, Pilbara Minerals, Renault, Advanced Metallurgical Group and Tesla.
To be included in the index, the company needed to have a free float market capitalisation of at least US $200 million ($258 million) and a minimum three-month daily trading average of US $1 million.
Performance of BetaShares Asia Technology Tigers and ETFS Battery Tech and Lithium ETFs over the 12 months to 30 November 2020
