IndexIQ has launched the IQ Hong Kong Small Cap ETF, which it says it the first exchange-traded fund to focus on the sector. It will track the IQ Hong Kong Small Cap Index.

The firm notes that Hong Kong has grown rapidly for many decades and has the advantage of being a “strategic gateway to mainland China” as well as a free market culture. In 2009, it was the largest center of initial public offerings.

“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, chief executive officer 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 the IQ Hong Kong Small Cap ETF, investors can add focused exposure to Hong Kong’s strong consumer class and overall domestic economy by investing in small-cap equities.”

IndexIQ has four other single-country small-cap ETFs: the IQ South Korea Small Cap ETF, IQ Taiwan Small Cap ETF, IQ Australia Small Cap ETF and IQ Canada Small Cap ETF.

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