Hang Seng Index ETF

IMPORTANT RISK WARNINGS / FUND INFORMATION FOR HONG KONG INVESTORS
   
Hang Seng Index ETF (the "HSI ETF" is an index tracking fund which aims to match, before expenses, as closely as practicable the performance of the Hang Seng Index (the "Index". The HSI ETF invests primarily in the constituent stocks of the Index.
The HSI ETF is different from a typical unit trust as it is listed on The Stock Exchange of Hong Kong Limited, and like other listed stocks, carry similar risks such as liquidity risk and risk of trading suspension. The market price per Unit could be significantly higher or lower than its Net Asset Value per Unit due to market demand and supply, liquidity and scale of trading spread in the secondary market and will fluctuate during the trading day.
The HSI ETF is subject to tracking error risks, risks associated with passive investments and risks of concentration of investments in a single market/several constituent stocks of the Index.
Investment involves risks and investors may lose substantial part of their investment in the HSI ETF.
   
Investors should not only base on this webpage alone to make investment decisions, but should read the HSI ETF's offering documents (including the full text of the risk factors stated therein) in detail.
What is HSI ETF?

Hang Seng Index ETF (the "HSI ETF") is an exchange traded fund and Units of the HSI ETF can be traded like listed shares on the Stock Exchange of Hong Kong Limited (the "SEHK"). Its investment objective is to track, as closely as practicable, the performance of the Hang Seng Index (the "Index") by holding a portfolio of the constituent stocks of the index.
How to Trade?

Unit Price of HSI ETF Determined by the forces of market supply and demand (Not applicable to in-kind transactions conducted through Participating Dealers)
Trading Channel Trade through stock brokers or banks on the SEHK
Trading Hours Traded during SEHK trading hours
Minimum Trading Size 100 Units
Fees for acquisition and disposal of Units - Brokerage#
- SFC Transaction Levy
- SFC Investor Compensation Levy
- SEHK Trading Fee
- Stamp Duty
- Purchase Order Handling Fee#(if any)
Fund Operating Cost Management Fee, Trustee Fee and Other Expenses*
# Varies from broker to broker
* Please refer to the Hong Kong Offering Document of the HSI ETF for full details.
Key Benefits

TRACK INDEX PERFORMANCE
The HSI ETF invests in the constituent stocks of the Index in substantially the same weightings as those stocks have in the Index. Hence, investors can have the opportunity to receive investment returns that track, as closely as practicable, the performance of the Index by holding the HSI ETF.
DIVERSIFICATION
HSI ETF represents an investment portfolio, which helps its investors to indirectly invest across a basket of constituent stocks of the Index for diversification and risk reduction.
TRADE LIKE LISTED SHARES
Trading of HSI ETF Units is as convenient and flexible as trading of shares listed on the SEHK. Investors can trade HSI ETF Units anytime during trading hours of the SEHK.
HIGH TRANSPARENCY OF INVESTMENT PORTFOLIO
The fund manager of HSI ETF primarily adopts a replication strategy and the HSI ETF invests in the constituent stocks of the Index in substantially the same weightings as those stocks have in the Index. Information on the constituent stocks of the Index is public information which investors can easily obtain. Generally speaking, unlike traditional actively managed investment fund, the fund manager of HSI ETF does not select stocks or investment instruments based on their own investment judgement. Hence, the investment portfolio of HSI ETF is comparatively more transparent than that of the traditional actively-managed investment fund.
LOWER INVESTMENT AMOUNT
The board lot size of the HSI ETF is 100 Units. Assuming that the Hang Seng Index is at 18,000, each Unit of HSI ETF would be traded at around HK$180 and it would cost around HK$18,000* to buy 1 board lot of HSI ETF Units. Hence the cost per board lot is approximately the same as the level of the Index which is easy to remember.
LOWER TRANSACTION COSTS
The transaction cost of HSI ETF Units is comparatively lower than that of the traditional investment fund. Investors only need to pay brokerage and securities trading fees when they trade HSI ETF Units. For details, please refer to the question: "How can I buy or sell Units in Hang Seng's ETF(s)?" under "Questions relating to the 3 ETFs managed by Hang Seng Investment Management Limited" of the FAQs.
OPPORTUNITY TO RECEIVE CASH DIVIDENDS
The Manager of the HSI ETF intends to distribute cash dividends (if any) to investors on a semi-annual basis#
* This is only a rough approximation and is for reference only (brokerage and other transaction fees not included). The actual proportion may vary due to market demand and supply for the Units, as well as other factors. The Manager, Hang Seng Investment Management Limited, shall not be liable for such rough approximation.

# The Manager shall publish details of dividend declaration dates and amount, ex-dividend dates and dividend payment dates on the website of the HSI ETF (www.hangseng.com/etf) and via SEHK's website (www.hkex.com.hk).
Investors should note that investment involves risks (including the possibility of loss of the capital invested), prices of fund units may go up as well as down and past performance information presented is not indicative of future performance. Investors should read the relevant fund's offering documents (including the full text of the risk factors stated therein (in particular those associated with investments in emerging markets for funds investing in emerging markets)) in detail before making any investment decision.

The fund(s) mentioned above has been authorised by the Securities and Futures Commission in Hong Kong ("SFC"). SFC authorisation is not a recommendation or endorsement of the fund(s) nor does it guarantee the commercial merits of the fund(s) or its performance. It does not mean the fund(s) is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.

This webpage has not been reviewed by the SFC.