How Do I Choose the Best Exchange-Traded Funds?

Exchange-traded funds, also known as ETFs and "combined shares", are an investment product of the Hong Kong Stock Exchange's securities market. "Portfolio" invests in a basket of securities to keep up with index performance, allowing investors to invest in specific markets or industries rather than a single stock, which is cost-effective.

Exchange traded fund

The trading method of "combined shares" is as usual

The transaction cost of "combined shares" is the same as buying and selling stocks. Investors need to pay brokerage commission, transaction levy, investor compensation levy, transaction fee and stock stamp duty. Some overseas `` portfolios '' are exempt from receiving stocks.

In general, the market price of a "combined stock" is very close to the market value of the relevant securities in the portfolio, plus all the net income received but not distributed. "Combination stocks" are carried out in units of "lots", and the investment amount of each lot is usually set at a popular level.

Investing in "combination stocks" can enjoy the advantages of convenience, flexibility, and low transaction costs of general investment stocks, as well as the benefits of diversified investment and close market conditions.

Holders of "combined shares" may also receive dividends, usually every six months or once a year. For details, please refer to the dividend policy contained in the prospectus or sales document.