For example, Guangfa Hong Kong Stock Connect Hang Seng A Index Fund tracks the Hang Seng Composite Medium-sized Stock Index and mainly invests in Hong Kong medium-sized growth stocks. If the trend of Hang Seng Composite Mid-cap Index is consistent with the investment direction of Guangfa Hong Kong Stock Connect Hang Seng A Index Fund, then the investment of Guangfa Hong Kong Stock Connect Hang Seng A Fund will benefit.
Hong Kong stock index funds also have the same characteristics as index funds. The Hong Kong Stock Index Fund takes the Hong Kong Index as the underlying index of investment transactions and the index constituent stocks as the investment targets. A fund product that tracks the performance of the underlying index and builds a portfolio by purchasing all or part of the constituent stocks of the index.
Extended data:
Precautions:
1, risk of fund net value fluctuation. Since the target of Hong Kong stock ETF is to copy the target index, when the target index fluctuates due to various factors, the net value of Hong Kong stock ETF will also fluctuate. This is the biggest risk of investing in Hong Kong stock ETFs.
2. Risk of tracking error between fund net value and underlying index. Due to the influence of management fees, dividends of constituent stocks and other factors, it is difficult for ETF managers to completely copy the index performance, resulting in tracking errors.
3. Transaction discount premium risk. Due to the arbitrage mechanism of discount premium in Hong Kong stock ETF, the transaction price tends to be consistent with the net value under normal circumstances, but due to the influence of market supply and demand, its discount premium may also fluctuate greatly in the short term.
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