Friday, May 25, 2007

Funds - some new choices

I have written previously about my frustration with the very limited range of low cost no load funds available to retail investors in Hong Kong.

The situation has improved this year with a number of new ETFs being launched and listed on the Hong Kong Stock Exchange. Unfortunately, for most of them the volume of units traded each day are very small (for a few, the volume is zero), but there is enough in a few of them (Commodities, Russia, China, India and Hong Kong) to have at least a few viable low cost investment options. Unfortunately some of the ETFs for broader markets that I would be interested in have almost no turnover so I will have to continue to look elsewhere for many of my investment needs.

1 comment:

Anonymous said...

I don't think low volume for ETF should be a concern as long as (a) market maker always provide bid/ask price around the NAV of underlying index; (b) the bid/ask price move in tandom with index and (c) the fund size - asset under management - either stay constant or increase.

You may want to read this:

- Neil