Hong Kong has a thriving exchange-traded funds (ETFs) market, offering a wide range of investment options to suit various needs and risk tolerance levels.
The Hong Kong Stock Exchange (HKEX) is home to over 100 ETFs, covering various asset classes, including equities, bonds, commodities, and currencies.
These ETFs track various indices, such as the Hang Seng Index, the MSCI Hong Kong Index, and the S&P/ASX 200 Index, providing investors with diversified exposure to the Hong Kong and global markets.
Investors can choose from ETFs with different investment objectives, such as income generation, capital appreciation, or a combination of both.
For your interest: Investment and Portfolio Analysis
Types of ETFs
Hong Kong's ETF market offers a range of products that cater to different investment strategies and risk appetites.
Some ETFs track futures-based indices, which can provide exposure to commodities such as crude oil. For instance, the Mirae Asset Horizons S&P Crude Oil Futures Enhanced ER ETF tracks the S&P GSCI Crude Oil Enhanced Index Excess Return, while the CSOP WTI Oil Annual Roll December Futures ER ETF tracks the BofA Merrill Lynch Commodity index eXtra CLA Index (Excess Return).
Explore further: United States Oil Fund
ETFs like the Samsung HSI Futures ETF and the Samsung HSI Futures RMB FX ETF track the HSI Futures Index and the HSI Futures RMB FX Index, respectively, providing exposure to the Hong Kong market.
Here are some examples of futures-based ETFs listed on the Hong Kong exchange:
Futures Based
Futures Based ETFs are designed to track the performance of specific futures contracts. These ETFs are a great option for investors looking to gain exposure to commodities or currencies.
One of the notable Futures Based ETFs is the 3097.HK Mirae Asset Horizons S&P Crude Oil Futures Enhanced ER ETF, which tracks the S&P GSCI Crude Oil Enhanced Index Excess Return. This ETF is a great example of how Futures Based ETFs can be used to track the performance of crude oil prices.
The 3124.HK Samsung HSI Futures ETF tracks the HSI Futures Index, which is a key indicator of the Hong Kong stock market. This ETF is a great option for investors looking to gain exposure to the Hong Kong market.
Futures Based ETFs can also be used to track the performance of specific currencies, such as the RMB FX Index. The 3134.HK Samsung HSI Futures RMB FX ETF tracks this index, providing investors with a way to gain exposure to the Chinese currency.
Investors can also choose from a variety of Futures Based ETFs that track the performance of crude oil prices. The 3135.HK CSOP WTI Oil Annual Roll December Futures ER ETF, for example, tracks the BofA Merrill Lynch Commodity index eXtra CLA Index (Excess Return).
Here are some examples of Futures Based ETFs listed on the Hong Kong exchange:
- 3097.HK Mirae Asset Horizons S&P Crude Oil Futures Enhanced ER ETF
- 3124.HK Samsung HSI Futures ETF
- 3134.HK Samsung HSI Futures RMB FX ETF
- 3135.HK CSOP WTI Oil Annual Roll December Futures ER ETF
- 3175.HK Samsung S&P GSCI Crude Oil ER Futures ETF
Bond ETFs
Bond ETFs offer a convenient way to invest in bonds, tracking various indices to provide exposure to specific bond markets.
The E Fund Citi Chinese Government Bond 5-10 Years Index ETF, for example, tracks the Citi Chinese Government Bond 5-10 Years Index.
Some Bond ETFs focus on regional markets, such as the ABF HK IDX ETF which tracks the iBoxx ABF Hong Kong Index.
For another approach, see: Pimco Bond Funds List
Investors can also opt for Bond ETFs that track broader indices, like the iBoxx ABF Pan-Asia Index, which is tracked by the ABF Pan Asia Bond Index Fund.
Here are some specific Bond ETFs and their corresponding indices:
- E Fund Citi Chinese Government Bond 5-10 Years Index ETF - tracks Citi Chinese Government Bond 5-10 Years Index
- ABF HK IDX ETF – tracks the iBoxx ABF Hong Kong Index
- ABF Pan Asia Bond Index Fund – tracks the iBoxx ABF Pan-Asia Index
- CSOP China Ultra Short-Term Bond ETF – tracks the Citi Chinese Government and Policy Bank Bond 0-1 Year Select Index
- BMO Asia USD Investment Grade Bond ETF – tracks the Barclays Asia USD Investment Grade Bond Index
- CSOP China 5-year Treasury Bond ETF – tracks the China Bond 5-year Treasury Bond Index
- Bloomberg Barclays China Treasury 1-10 Years Index
Commodity ETFs
Commodity ETFs track the prices of specific commodities, such as gold or oil. They allow investors to gain exposure to these markets without directly buying the underlying commodity.
In Hong Kong, there are several commodity ETFs available, including those that track the gold price. The SPDR Gold Trust (2840.HK) tracks the Gold Price, while the Value Gold ETF (3081.HK) and Value Gold ETF (83081.HK) track the London Gold Fixing Price in USD (A.M.).
Oil ETFs have also outperformed in the past, with the Samsung S&P GSCI Crude Oil ER Ftus ETF returning 53.65% in 2021, and the Global X S&P Crude Oil Fut Enh ER ETF returning 46.07%. This is likely due to the increase in crude oil demand globally.
Consider reading: Global X Etf Price
Here are some examples of commodity ETFs in Hong Kong:
- 2840.HK SPDR GOLD TRUST – tracks the Gold Price
- 3081.HK Value Gold ETF - tracks the London Gold Fixing Price in USD (A.M.)
- 83081.HK Value Gold ETF - tracks the London Gold Fixing Price in USD (A.M.)
- 83168.HK Hang Seng RMB Gold ETF – tracks the London Gold Fixing Price
These ETFs can be a great way for investors to gain exposure to commodity markets, but it's essential to do your research and understand the underlying assets before investing.
Frequently Asked Questions
Which ETF tracks the hang seng index?
The iShares Core Hang Seng Index ETF tracks the Hang Seng Index, providing exposure to Hong Kong's top equities. Learn more about this ETF and its investment objectives.
Sources
- https://en.wikipedia.org/wiki/List_of_Hong_Kong_exchange-traded_funds
- https://www.investing.com/etfs/hong-kong-etfs
- https://www.morningstar.hk/hk/news/217758/2021s-top-hong-kong-etfs.aspx
- https://www.mutualfunds.com/geography-categories/hong-kong-funds-and-etfs/equity/
- https://thesmartinvestor.com.sg/5-popular-etfs-on-the-hong-kong-stock-exchange/
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