Previously, I had touched on $TRACKER FUND OF HONG KONG(02800)$which mirror the Hang Seng Index for long term investment. While this is a good index ETF, it might not be a suitable choice for investors with small account or investors who wish to accumulate it slowly and progressively over time.
As such, I'm sharing a similar index ETF which mirror HSI that would suit small account investors $HS HSI ETF(02833)$
What's the difference between $TRACKER FUND OF HONG KONG(02800)$versus $HS HSI ETF(02833)$? I did a comparison and here's my findings
1) 2800HK offer option and as such have more liquidity due to larger fund size while 2833HK does not allow option and have lesser liquidity
2) 2800HK only allows HKD settlement where as 2833HK allows either HKD or CNY settlement (for CNY settlement, investors need to buy under it under 82833HK)
3) 1 lot of 2800HK come with 500 shares where as 1 lot of 2833HK come with 100 shares. (You could literally own this index ETF with HKD2,100 for each purchase)
4) 2800HK is managed by SSGA with management fee/ expense ratio of 0.1% while 2833HK is managed by Hang Seng Investment Management fee/ expense ratio of 0.05%
5) 2800HK have 66 holdings as compared to 2833HK with 60 holdings
As always, this sharing is for educational purposes only. Please always do research and understand the risks involved in any investment.
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