(HK) Understanding HK ETFs
In the dynamic world of trading, Exchange-Traded Funds or ETF have emerged as a game-changer, especially in the Hong Kong market. But what exactly are ETFs, and why should you consider them? Let's break it down.
What is ETF?
You're at the grocery store, overwhelmed by the sheer variety of fruits. Do you spend hours picking each one individually, unsure of their quality or flavor? Or, do you grab a pre-made basket of curated fruits, knowing they're fresh and diverse? ETFs are like the pre-made basket - instant diversification, convenience, and delicious results for your investment portfolio.
List of tradeable HK ETFs via Rakuten Trade.
Why Consider ETF?
Just like a diverse fruit basket protects you from relying on a single fruit if it spoils, ETFs offer a mix of assets like stocks, bonds, and commodities to mitigate risk. And just as a pre-picked basket grants quick access to the grocery store's bounty, HK ETFs provide effortless entry into the dynamic Hong Kong market.
HK ETF Example:
| CSOP Hang Seng Index ETF (3037) | CSOP Hang Seng TECH Index ETF (3033) | Summary | |
|
Tracking Difference Graph |
 |
.png) |
There is only minimal difference between the ETF and the benchmark index. Despite the drop in the ETF, there's still a potential for profit in the long run. |
|
Sector Breakdown |
 |
.png) |
Each ETF has different sectors included, ranging from financials and IT to healthcare, and more. |
Source:
- https://www.csopasset.com/en/products/hk-hsi
- https://www.csopasset.com/en/products/co-chst
Popular HK ETFs in Rakuten Trade
#1 TRACKER FUND OF HONG KONG (2800)
.svg.png){kind=tracking}
Current Price: HKD16.94
Min. Amount (MYR): 5,132.82
The investment objective is to provide investment results that closely correspond to the performance of the Hang Seng Index.
The Manager seeks to achieve TraHK's investment objective by investing all, or substantially all, of TRACKER FUND OF HONG KONG's assets in shares in the constituent companies of the Index ("Index Shares") in substantially the same weightings as they appear in the Index.
#2 GLOBAL X HANG SENG HIGH DIVIDEND YIELD ETF (3110)
Current Price: HKD19.13
Min. Amount (MYR): 1,159.28
Global X Hang Seng High Dividend Yield ETF accesses 50 stocks and/or real estate investment trusts ("REITs") listed on the Stock Exchange of Hong Kong with the highest net dividend yield.
#3 CSOP NASDAQ-100 INDEX DAILY (2X) LEVERAGED PRODUCT (7266)
Current Price: HKD18.22
Min. Amount (MYR): 1,104.13
The investment objective of CSOP HANG SENG TECH INDEX DAILY (2X) LEVERAGED PRODUCT is to provide investment results closely correspond to twice (2x) the Daily performance of Hang Seng TECH Index. The Product does not seek to achieve its stated investment objective over a period of time greater than one day.
Here are the top actively traded HK ETF’s at Rakuten Trade
Trade on HK Market Now
Get RM30 GrabGifts Voucher* when you trade on HK market for the first time!
Yet to activate your foreign trading account? All you need to is log into your dashboard (web or app) and click on the HK flag. It's FREE! Do note that activation takes up to 3 days. Watch this tutorial video for additional help.
Don't have Rakuten Trade account?
Sign up now and get RM10 GrabGifts Voucher*
​Protip: Remember to check the box ‘I want to trade shares in U.S. & Hong Kong markets” at the application form.
HK markets open at 9:30 am (MY Time). Happy trading!
