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ETF Fundamentals

What are ETFs?

Exchange Traded Funds (ETFs) are funds that are listed and traded on a stock exchange. Their main goal, depending on the type of ETF, is to either track the movements of an index through passive management, or outperform an index with active management.

 

When to/why invest in ETFs?

  1. ETFs allow for investing in sectors and/or indices, providing less risk versus investing in a single company.
  2. Like stocks, ETFs are traded on an exchange, providing higher liquidity and transparency
  3. As ETFs may hold vastly different constituent funds, an investor has exposure to multiple companies by investing in one fund, mitigating concentration risk.

 

Drawbacks of ETFs

  1. Some ETFs that track specific sectors may be influenced by large swings within that sector (eg. Oil)
  2. Some ETFs that are not as actively traded may have high bid/ask spread
  3. If one constituent stock is performing poorly, an investor cannot spin off that one stock within the ETF.

 

What are the types of fees that I may be charged?

Unlike trading of shares, there is no stamp duty collected for ETFs, nor do we have a minimum charge for trades. We only charge commission, and the transaction fees that HKEx charges.

Disclaimer

Please read the following information carefully before proceeding.

 

The information contained in this website has been prepared to assist potential investors in making an informed decision in relation to investing in the ETFs / products under PANDO. A product key facts statement and prospectus for the ETFs / products under the ETFs which contain the key features and risks are also issued by the manager and available in this website.

 

The contents of this website have been prepared in good faith. However, the prices quoted are for reference only and may be subject to change without prior notice. Past performance is not a reliable indicator of future performance. The value of ETFs / products can fluctuate substantially within a short period of time. The management company or the directors of the scheme (in the case of a mutual fund corporation) accept full responsibility for the accuracy of the information contained in the offering document and confirm, having made all reasonable enquiries, that to the best of their knowledge and belief there are no other facts the omission of which would make any statement misleading.

 

An investment in any ETFs / products carries various risks. Each of these may affect the net asset value, yield, total return and trading price of the units. There can be no assurance that the investment objectives of ETFs will be achieved. You should carefully evaluate the merits and risks of an investment in the relevant ETFs / products in the context of your overall financial circumstances, knowledge and experience as an investor. The offering document should be read for further details including the risk factors.

 

ETF / product under the OFC are authorized by the Securities & Futures Commission in Hong Kong (the “SFC”) under Section 104 of the Securities and Futures Ordinance. However, the SFC takes no responsibility for the financial soundness of the ETFs / products under the Trusts or for the correctness of any statements made in this website. SFC authorization is not a recommendation or endorsement of a scheme nor does it guarantee the commercial merits of a scheme or its performance. It does not mean the scheme is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.

 

You should consult your financial adviser, consult your tax advisers and take legal advice as appropriate as to whether any governmental or other consents are required, or other formalities need to be observed, to enable you to acquire units as to whether any taxation effects, foreign exchange restrictions or exchange control requirements are applicable and to determine whether any investment in the ETFs / products is appropriate for you.

 

The website has not been reviewed by the Commission.

For any questions or complaints, please contact the manager at its address as set out in the “Contact Us” or call the manager on +852-38913288 during normal office hours.