Hong Kong

Hong Kong mutual funds and ETFs invest in a wide range of... Hong Kong mutual funds and ETFs invest in a wide range of asset classes in Hong Kong. Depending on their mandate, these funds may invest in equities, fixed income, commodities, and alternatives. However, equities are the most common asset class. These funds cover a wide range of sectors and industries, as well as market capitalization. Lastly, these funds can be passive (aka index funds) or actively managed. While now part of emerging market China, the special administrative region of Hong Kong is a developed market economy. Its economy is characterized by high levels of trade with the rest of the world and a highly educated population. The stock market is currently the sixth largest globally, by market capitalization. The risk involved with Hong Kong mutual funds and ETFs falls somewhere in between that of China and developed market investments. Due to China’s influence over Hong Kong, there is now significant geopolitical risk that didn’t exist previously. China, for example, could decide to nationalize key companies that are currently publicly traded. Aggressive-minded investors may consider allocations to these funds, but conservative investors may wish to steer clear. Last Updated: 12/10/2024 View more View less

Hong Kong mutual funds and ETFs invest in a wide range of asset classes in Hong Kong. Depending on their mandate, these funds may invest in equities, fixed income, commodities, and alternatives. However,... Hong Kong mutual funds and ETFs invest in a wide range of asset classes in Hong Kong. Depending on their mandate, these funds may invest in equities, fixed income, commodities, and alternatives. However, equities are the most common asset class. These funds cover a wide range of sectors and industries, as well as market capitalization. Lastly, these funds can be passive (aka index funds) or actively managed. While now part of emerging market China, the special administrative region of Hong Kong is a developed market economy. Its economy is characterized by high levels of trade with the rest of the world and a highly educated population. The stock market is currently the sixth largest globally, by market capitalization. The risk involved with Hong Kong mutual funds and ETFs falls somewhere in between that of China and developed market investments. Due to China’s influence over Hong Kong, there is now significant geopolitical risk that didn’t exist previously. China, for example, could decide to nationalize key companies that are currently publicly traded. Aggressive-minded investors may consider allocations to these funds, but conservative investors may wish to steer clear. Last Updated: 12/10/2024 View more View less