Since the announcement of the "Hong Kong stock through train" plan last year, investing in the Hong Kong stock market has been the focus of investors' attention. For mainland investors who have the opportunity to set foot in Hong Kong stocks in the future, investing in ETF funds can be the first choice.

Hong Kong stocks are a strange market for mainland investors, not to mention the fact that ordinary investors, due to lack of energy, knowledge and experience, generally have lower returns on stock selection than investment funds, which is a common phenomenon in all stock markets. Among investment funds, index funds are ahead of most ordinary funds for a long time. Take the United States as an example: 1977- 1997 The percentage of active funds that can outperform the Standard & Poor's 500 Index shows a sharp downward trend, from the early 50% to 25%, and the situation is even worse after 1997. By the end of 1998, the performance of 90% active funds was lower than the market.

It can be seen that in a mature market with smooth information flow and mainly institutional investors, it is increasingly unrealistic to outperform the index and obtain excess returns. Even Graham, the "father of securities analysis" and Buffett's teacher, reluctantly came to the conclusion that we can no longer rely on basic securities analysis to obtain excessive return on investment. Since it is difficult to beat the index, it is better to win the index, that is, to buy ETF funds.

ETF is the abbreviation of Ex-changeTradedFund, which is a purer index fund. Investors can buy and sell ETF shares in the secondary market just like buying and selling closed-end funds or stocks; You can also buy or redeem the fund shares of fund management companies in the primary market, that is, a basket of stocks for fund shares or a basket of stocks for fund shares. In this way, ETF almost operates in Man Cang, with high capital utilization efficiency and low management cost. When the net value of the fund deviates from the transaction price in the secondary market, it will lead to arbitrage transactions between investors in the two markets, and arbitrage transactions will eventually bring the transaction price back to the vicinity of the net value of the fund. Therefore, ETF performance is closer to the underlying index. In this way, as long as investors buy ETFs, the increase of the underlying index is the investor's rate of return.

At present, there are four ETFs linked to the performance of the Hong Kong stock index in Hong Kong, including: TraHK (Quotes, Information, Comments) (2800. HK), Hang Seng Index Listed Fund (2833. HK), Hang Seng H-share index is a listed fund with the state-owned enterprise index as the target (2828. HK) and Hang Seng Xinhua FTSE China 25 Index Listed Fund (2838.HK), which tracks the performance of red chips and state-owned enterprises.

Although the valuation of Hong Kong stocks is lower than that of mainland A shares, it is unrealistic to make huge profits. Even if Buffett and legendary fund manager Peter outperform the index for a long time? Lynch believes that "most investors should invest in index funds if they want to obtain satisfactory returns". Therefore, mainland investors should not have too many illusions about the future income of investing in Hong Kong stocks, and investing in ETFs is a wise choice.