Ketaki Garg of MSCI on ETF TV Discusses how ETF Connect is reshaping cross-border investments

Ketaki Garg, Executive Director, APAC Head of Quantitative Index Research Solutions at MSCI, joins Deborah Fuhr and Margareta Hricova to discuss how ETF Connect continues to reshape cross-border investing, providing mainland Chinese investors with greater access to international markets and diversified investment opportunities, according to insights shared by Ketaki Garg, Executive Director and Head of Equity and Multi-Asset Research, Asia Pacific at MSCI, during a recent ETF TV interview.Garg noted that investor demand across Asia Pacific is increasingly focused on income generation, climate-aware investing, thematic exposures, and managing concentration risk. While high-dividend strategies remain popular, investors are seeking new approaches to enhance income and yield. Interest is also growing in themes such as artificial intelligence, electrification, and the commodity supercycle.Since its launch in 2022, ETF Connect has experienced significant growth, particularly through the Southbound channel, reflecting strong demand from mainland Chinese investors. A notable trend has been the increasing availability of ETFs providing exposure to overseas equity markets, including U.S. equities, highlighting investors’ desire for greater global diversification.The discussion also examined the development of MSCI’s ETF Connect Index Suite, which balances regulatory requirements, diversification rules, and investor demand for differentiated exposures. Looking ahead, MSCI is exploring next-generation ETF Connect indices that may combine different sector, factor, and thematic exposures across Hong Kong and international markets while remaining compliant with ETF Connect requirements.“ETF Connect has become an increasingly important gateway for mainland investors seeking access to global investment opportunities,” said Garg. “As the market evolves, innovation will increasingly come from differentiated exposures and more sophisticated portfolio construction.”The interview highlighted ETF Connect’s growing role in expanding investment choice, facilitating cross-border capital flows, and supporting the continued development of Asia Pacific’s ETF ecosystem.About ETF TVETF TV provides insights, interviews and analysis on the global ETF industry, featuring leading voices from across asset management, regulation and capital markets.You can watch this episode and previous episodes on ETF TV and YouTube. ETF TV is your insight into the world of exchange-traded funds, issuers and investment. Register to receive updates and watch prior episodes at www.ETFtv.net and make sure to follow us on LinkedIn – ETF TV company page and ETFs Network group.