Friday, June 28, 2013

More A50 ETF purchased

Today I added a few more iShares A50 ETF (HK:2823) to the portfolio. I paid HK$8.99 for the additional units.

Only after I placed the order did I notice J-D's comment on my previous purchase. He is quite correct that the CSOP A50 (HK:2822) would have been better - lower premium to NAV and lower total expense ratio. 

Going forward, any additional China ETF purchases will be for HK:2822 rather than HK:2823 (assuming the premium/discount does not reverse). When the time comes to sell, it will be the reverse (subject to the same assumption).

As an aside, I am slightly time poor at the moment - still working full time while my university course has started which gives me less time to do the research. It was slightly disappointing that, of the two new stocks that I did look at closely, on quickly overran my limit order (CR Power) and the other was on our restricted list.


Anonymous said...

Hi, i'd be interested to know your thoughts on the different China indices, and if you buy anything other than the A50.

Up to now i've been buying 3049.HK for China exposure, being an ETF tracking the CSI300. I prefer it to the A50 mainly because it offers broader diversification and a lower weighting in Financials. It also has an expense ratio of 0.5% which is around half of the respective A50 ETFs.


traineeinvestor said...

Hi beancounter

Thanks for that. IIRC, I looked at 3049 (and a few others) when they were realtively newly listed and the issue was that turnover was miniscule - too low even for a small investor like me. Now it's no problem, I should revisit all the ETFs.