5 Reasons to Consider the CUBS ETF*

Population

880m

Forecast to reach 1 billion by 2035

Digitization

440m

Smartphones

Growth

8.6%

2021-2026E
$GDP CAGR

Access

~2.5%

Exposure in core EM indices

Performance

#1

Performing new EM ETF in 2021

Fund Description

Active thematic ETF investing in public companies focused on structurally growing industries, listed across 5 large, fast-growing, inaccessible Emerging Asia economies spanning 880m people, 440m smartphones and a GDP as large as India’s GDP.

Fund Manager

Maurits has been active in Emerging Markets for ~11 years, most recently as a public and private equity investment partner at a leading London based EM fund, where he led investments and served on the boards of various companies. Prior to this, Maurits worked in M&A at Goldman Sachs and in trading at Vitol. Maurits has a BA in Economics from Middlebury College.

Fund Details

As of

Primary Exchange NYSE
Ticker CUBS
Cusip 30151E640
Median 30-Day Bid
# of Holdings
Fund Inception Date 06/16/21
Gross Expense Ratio 1.09%
Net Expense Ratio* 0.99%
Shares Outstanding
Investment Advisor ETC
Sub-Investment Advisor Dawn Global Limited

*Contractual expense cap of 0.99% is in effect through June 21st, 2022

What Experts Say

Read what the reputable asset managers, research, and consulting firms say about Emerging Asia

“Emerging Asia provide Asia with a substantial pool of labor. Their combined working-age population is projected to increase by 18% by 2040. In many cases, wages are less than 50% those in mainland China, which means that these economies potentially are alternative locations for companies that opt to adjust their operational footprint.”

The Future of Asia Report, Sep. 2019

“Rising incomes in Asia will probably be the most important economic and investment story of the 2020s. As incomes rise, the Asian middle class is expected to grow by about 1.2 billion people by 2030, significantly boosting consumption.”

JP Morgan AM Insights, Mar. 2021

“Emerging Asia has outperformed other emerging markets during the last two decades, with China, India and Vietnam achieving annual average real GDP growth of above 6% between 2000 and 2020”

Euromonitor Insights, Dec. 2021

Execution Partners

Custody & Accounting

Statutory Distribution

ETF
Execution

Legal Consulting

ETF Marketmaker


CUBS Holdings

% of Net Asset Values Company Ticker Market Value

Diamond Vietnam ETF Explanation

The largest position in the CUBS ETF is the Diamond Vietnam ETF. This Vietnam ETF is listed locally in Vietnam and is concentrated on promising companies in Vietnam that are subject to Foreign Ownership Limit restrictions. The Foreign Ownership Limits are applied by the Vietnamese Government to select number of companies and once these limits have been reached, foreigners are only able to buy shares from selling foreign shareholders, often at a material premium to the existing share price of the respective company. The Diamond Vietnam ETF is the largest position in CUBS ETF for 5 reasons:

  • The CUBS ETF aims to offer investors the best liquid company exposure in each country. This foreign ownership limit restricts most foreign investors from accessing the most promising companies in Vietnam given the foreign ownership limit is full in most of the effected companies
  • The Diamond Vietnam ETF is locally listed in Vietnam and therefore not accessible to foreign investors unless they have a local trading account in Vietnam. The Diamond ETF is exclusively focused on foreign ownership restricted companies, and 80% of the exposure in the Diamond Vietnam ETF would otherwise be directly obtained in the CUBS ETF portfolio if this exposure was not foreign ownership restricted
  • The ~12% weighting of the Diamond Vietnam ETF reflects the fact that the largest 6 positions in the Diamond ETF successfully screened and qualified for the CUBS portfolio based on the investment process, yet couldn’t be included directly due to the foreign ownership limit – each position in the CUBS ETF is currently ~2%, which multiplied by 6 positions would get to the ~12% weighting
  • The cost of investing in the Diamond Vietnam ETF is absorbed by Dawn Global, meaning CUBS ETF investors get this Diamond Vietnam ETF exposure at no additional cost whereas one would otherwise be paying an additional ~80Bps. The Diamond Vietnam ETF is only one part of the overall Vietnam exposure in the CUBS ETF portfolio
  • The Diamond Vietnam ETF is overseen by Dragon Capital, one of the leading and largest foreign investment groups operating in Vietnam

Overview of Diamond Vietnam ETF Holdings

As of 12/31/2021

% of Net Asset Values Company Ticker Sector Market Cap ($m)

CUBS Prices & Performance

CUBS Nav/Market Price

As of

CUBS Performance

As of

Performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance data quoted. Returns for periods of less than one year are not annualized.

The market price returns are based on the official closing price of an ETF share or, if the official closing price isn’t available, the midpoint between the national best bid and national best offer (“NBBO”) as of the time the ETF calculates current NAV per share, and do not represent the returns you would receive if you traded shares at other times. NAVs are calculated using prices as of 4:00 PM Eastern Time. The first trading date is typically several days after the fund inception date. Therefore, NAV is used to calculate market returns prior to the first trade date because there is no bid/ask spread until the fund starts trading.

Distributions

CUBS Distribution Table 2021

Month Ex Date Record Date Pay Date Dividend Long Term
Capital Gains
Short Term
Capital Gains

Premium/Discount

CUBS Premium/Discount Table

Days traded at Nav Days traded at Premium Days traded at Discount

CUBS Premium/Discount Chart

CUBS SMA Facility

Investors interested in accessing the CUBS strategy or a derivation thereof through a segregated managed account (SMA) structure are asked to reach out to mp@dawnglobal.com who can provide further details and discuss the SMA options.

How to buy CUBS ETF

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