Exchange Traded Funds (ETFs) are passively-managed and open-ended funds, which are traded on the securities market of Hong Kong Exchanges and Clearing Limited (HKEx). All listed ETFs are authorised by the Securities and Futures Commission (SFC) as collective investment schemes.
ETFs are designed to track the performance of their underlying benchmarks (e.g. an index, a commodity such as gold, etc) and offer investors an efficient way to obtain cost-effective exposure to a wide range of underlying market themes. Similar to other securities, investors can buy or sell ETFs through their brokers at anytime during the securities market’s trading hours.
Benchmark tracking: Track closely the performance of the underlying benchmarks
Transparency: Has its own website operated by its ETF manager (a list of ETFs’ websites can be found on the HKEx website)
Low transaction costs: Do not charge any subscription fees. The transaction costs for trading ETFs at HKEx are the same as those for trading other securities
Low minimum investment: Usually set at an affordable level
Liquidity: Can be traded at anytime during the trading hours of the securities market
Convenience: Trade through brokers in the same way as other securities and the settlement arrangements are the same
Diversification: Track a portfolio of assets to provide diversified exposure to selected market themes
Market exposure: Provide the investors access to a basket of Hong Kong securities, overseas markets or other asset classes