OCBC Securities and Lion Global Investors are co-launching the world’s first exchange-traded fund (ETF) that tracks the performance of Asia-Pacific financial services companies.

Called the Lion-OCBC Securities Apac Financials Dividend Plus ETF, the fund marks OCBC’s fourth ETF launched in less than four years.

Its initial offer period commences on Thursday (Apr 11) and will end on May 3, before it is listed on May 13 in both Singapore-dollar and US-dollar denominations under the Singapore Exchange (SGX) tickers, YLD and YLU.

The ETF is benchmarked against the iEdge Apac Financials Dividend Plus Index, which was developed by OCBC Securities, Lion Global Investors and SGX. It is rebalanced on a semi-annual basis.

The index tracks 30 of the largest and most tradable Apac financial institutions in terms of free-float market capitalisation.

On Thursday, OCBC : O39 0% said investing in the Lion-OCBC Securities Apac Financials Dividend Plus ETF will provide exposure to high-performing banks, insurance and investment services companies listed in the Apac region.

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Though distributions are not guaranteed and may be made up of income, capital gains or capital, OCBC projects a minimum dividend payout of 5 per cent per annum of the issue price for the first two years.

Payouts will be distributed on a quarterly basis.

OCBC Securities managing director Wilson He said he expects the upcoming ETF to be “well received” due to its stable dividends and growth prospects stemming from its Apac focus.

“ETFs have long been popular among our customers at OCBC Securities. Income-focused investors will find this ETF particularly attractive,” he added.

Investors may subscribe to the Lion-OCBC Securities Apac Financials Dividend Plus ETF through participating dealers during the initial offer period. OCBC customers may also do so through OCBC ATMs or mobile and online banking by noon on May 2. 

Each unit will be at the issue price of S$1, and the minimum subscription quantity has been set at 2,000 units. There is no application fee.