To The Moon

Performance King

With a 31% price return, $CSOP SEA TECH ETF S$(SQQ.SI)$ / $CSOP SEA TECH ETF US$(SQU.SI)$ becomes the best ETF performer in 2024 YTD(NOV) at SGX[1]. SQQ/SQU has also garnered significant attention from investors in China. As of Decmber 4th, the total NAV of CSOP iEdge Southeast Asia + Technology Index ETF reached 240 million USD.[2]

CSOP iEdge Southeast Asia + Technology Index ETF is the first ETF in Singapore to provide investment opportunities in the technology industry in Southeast Asia and India. By investing in this ETF, investors can take advantage of the huge growth potential of emerging markets in Asia and diversify their portfolios by investing in the dynamic technology sector. The iEdge Southeast Asia+ Technology Index is compiled and maintained by SGX Index Edge and aims to track the performance of 30 leading technology companies in India, Singapore, Indonesia, Thailand, Vietnam and Malaysia. These companies are mainly distributed across information technology, software, consulting, automobile manufacturing, electronic components, and other industries.

Long-Term Positive Remains Unchanged

From a macro perspective, rapid growth is still the main driving factor in supporting SQQ/SQU.

The GDP growth rates of Malaysia, Singapore and Thailand in the third quarter increased significantly. Southeast Asian countries are increasing their global market share across various sectors, from light industrial products and asset-light services to tourism.

The spillover effect of China's industrial chain transfer is also gradually increasing, especially benefiting upstream industries in Southeast Asian countries such as automobiles and batteries.

The gradual interest rate cuts in Southeast Asian countries will also increase residents' consumption power, which can be further verified by the strong financial performance of Sea and Grab in e-commerce and local life consumption.

Southeast Asian countries have a long-term demographic advantage, with the consumption power of the young population expected to increase over time.

Of course, Trump's tariff policy on countries worldwide may introduce certain uncertainties and market fluctuations. However, Vietnam appears to be the most affected, and there are no Vietnamese companies among the Southeast Asian technology constituent stocks. Additionally, from an industry perspective, the fund's constituent stocks primarily involve local consumption, IT software outsourcing, and some low-end manufacturing companies, which are generally less affected by tariffs.

Overall, despite potential risks of a market correction due to global fluctuations expected next year, the long-term positive outlook remains unchanged. It is recommended that Singapore investors continue to pay attention and capture new opportunities for Southeast Asian technology growth with one click, and bullish on a SEA of Opportunities.

[1] SGX

[2] CSOP：https://www.csopasset.com/sg/en/products/sg-atech/etf.php

(Disclaimer)

“The investment product(s), as mentioned in this document, is/are registered under section 286 of the Securities and Futures Act (Cap. 289) of Singapore (the “SFA”).This material and the information contained in this material shall not be regarded as an offer or solicitation of business in any jurisdiction to any person to whom it is unlawful to offer or solicit business in such jurisdictions. This document is not to be construed as recommendations to buy/sell any above-mentioned securities, or any securities in the above-mentioned sectors or jurisdictions.

CSOP Asset Management Pte. Ltd. (“CSOP”) which prepared this document believes that information in this document is based upon sources that are believed to be accurate, complete, and reliable. However, CSOP does not warrant the accuracy and completeness of the information, and shall not be liable to the recipient or controlling shareholders of the recipient resulting from its use. CSOP is under no obligation to keep the information up-to-date. The provision of this document shall not be deemed as constituting any offer, acceptance, or promise of any further contract or amendment to any contract. The information herein shall not be disclosed, used or disseminated, in whole or part, and shall not be reproduced, copied or made available to others without the written consent of CSOP.

Advice should be sought from a financial adviser regarding the suitability of the investment and/or investment product before making an investment. Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not necessarily indicative of future performance. Investor should read the prospectus and product highlights sheet, which can be obtained on CSOP website or authorized participating dealers, before deciding whether to invest. This document has not been reviewed by the Monetary Authority of Singapore.”