Bualuang Securities (BLS), is providing Thai investors with access to the world’s leading stocks by introducing its newest DR “SP50001”. This DR represents the Hang Seng S&P 500 Index ETF, which tracks the flagship S&P 500 Index of the U.S. stock market. Trading will begin on the Stock Exchange of Thailand (SET) on October 22, 2024.
Pichet Sithi-Amnuai, President of Bualuang Securities Public Company Limited, revealed that amid the current volatility in the Thai stock market, driven by both domestic and international pressures, Thai investors have become more cautious. Many are diversifying their portfolios by investing in foreign securities through DRs on SET. This instrument offers a cost-effective and efficient way to access global markets, with investors able to start with as little as one unit, with no double management fees, nor concerns about offshore investment taxes, presenting a strong opportunity for long-term returns.
DR investments have gained increasing popularity, as demonstrated by BLS’s 10 DR01 products, which cover investments in U.S., Chinese, Hong Kong, and Vietnamese indices, as well as common stocks from European markets. These DRs currently have a combined market value of approximately THB 16.8 billion, a significant rise from THB 1.4 billion in 2019. The average daily trading value since the beginning of 2024 is around THB 96.9 million, up from THB 5.9 million in 2019. DR01 has also delivered impressive returns, particularly those referencing ETFs that track indices in the U.S., Hong Kong, and Vietnam (NDX01, CNTECH01, E1VFVN3001), which have returned approximately 14.5%, 12.0%, and 14.4%, respectively, compared to the SET index’s modest 5.6% increase since the start of 2024 (as of October 17, 2024).
BLS remains dedicated to continuously developing investment products that make global investing more accessible. Its latest DR “SP50001”, represents the Hang Seng S&P 500 Index ETF (3195), which tracks the S&P 500 Index. The ETF was listed on the Hong Kong Stock Exchange on April 23, 2024, and is traded in the HKD Counter. The assets under management (AUM) of ETF is approximately THB 2.0 billion (as of October 17,2024) and is managed by Hang Seng Investment Management Limited, the largest ETF manager in terms of assets under management in Hong Kong with approximately THB 1.3 trillion (Based on AUM of Hong Kong listed and domiciled ETFs. Source: HSVM, as of July 31, 2024).
BLS believes that DR “SP50001” will be well received by investors looking to diversify into leading global companies and grow alongside the U.S. economy and stock market. It will also appeal to those seeking exposure to the S&P 500 Index, which has delivered stable long-term returns and is highly regarded by top global investors. Furthermore, it provides an attractive option for those looking for new investment opportunities and risk diversification beyond their Thai stock portfolios.
“DR “SP50001” will be the first in Thailand that has the ETF tracking S&P 500 Index as the underlying securities, providing Thai investors with seamless and cost-effective access to the U.S. market. The S&P 500 Index, as the flagship index of the U.S. market, boasts a strong track record of returns and is one of the most widely tracked indices by investors around the world, offering a valuable opportunity for diversification into the 500 largest U.S. companies with ease and efficiency”, said Pichet Sithi-Amnuai.
Pichet Sithi-Amnuai, further stated that one of the strengths of the DR “SP50001” is that the S&P 500 Index comprises many of the world’s leading companies, including:
- Apple, a leader in technology with products like iPhone and iOS operating system.
- Microsoft, the world’s largest software company, known for Windows and Microsoft Office.
- Nvidia, the dominant graphics processing unit (GPU) manufacturer, benefiting from the AI trend.
- Amazon, a global leader in e-commerce and cloud services.
- Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp.
These companies represent approximately 7.2%, 6.5%, 6.0%, 3.5%, and 2.5% of the S&P 500 Index, respectively (as of September 30, 2024). Thai investors can conveniently gain exposure to these global leaders on SET.
Since its inception in 1957, the S&P 500 Index has posted positive returns in more than 70% of the years, demonstrating that investors are more likely to see gains than losses annually. The index has delivered a cumulative return of more than 2,089%, translating to a compound annual growth rate (CAGR) of approximately 11%, which far exceeds the 3% CAGR of Thailand’s SET index over the past 30 years. Additionally, the S&P 500 Index has outperformed 90% of actively managed mutual funds over the same period (as of October 17, 2024). This makes the S&P 500 Index a compelling choice for those seeking long-term investment in U.S. stocks.
Rosita Lee, Director and Chief Executive Officer of Hang Seng Investment Management Limited (HSVM) said, “Hang Seng Investment is pleased to announce the continuation of our valued collaboration with Bualuang Securities, following the success of the DRs of the Tracker Fund of Hong Kong (HK01) and the Hang Seng China Enterprises Index ETF (HKCE01). We are honored that the Hang Seng S&P 500 Index ETF has been selected as the underlying investment product for Bualuang Securities’ latest DR offering.
This new offering provides overseas investors with an excellent opportunity to diversify their portfolios while capturing the long-term growth potential of the S&P 500 Index which is widely regarded as the most representative of the U.S. stock market. HSVM’s commitment to expanding our global presence and strengthening relationships with market participants worldwide remains steadfast. We look forward to the positive impact this collaboration will have on investors.”
DR “SP50001” will be listed on SET through a Direct Listing process (without the need for prior subscription as in the case of IPOs), allowing investors to trade the new DR starting on October 22, 2024. Investors can find more information about DR “SP50001” in the prospectus available on www.sec.or.th, www.set.or.th or www.bualuang.co.th/dr.
Trading DR01 in Thai Baht on the Thai stock market is seamless, with real-time trading from 10:00 AM to 4:30 PM, without lunch breaks, via the Streaming app or at www.bualuang.co.th. For those interested in making large investments in DR “SP50001”, starting from 1 million shares or a value of THB 3 million and above, the Big Lot service is available directly with BLS’s market maker, offering the potential for better prices than those on the regular board. For further inquiries, please contact the BLS Global Investing team at 0-2618-1999.
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