The price at which a fund's shares can be purchased.

The current value of the pool of money shareholders have invested in a fund.

A period during which security prices in a particular market (such as the stock market) are generally falling.

The price at which a fund's shares are sold or redeemed.

A firm that buys and sells fund shares and other securities from and to investors.

A period during which security prices in a particular market (such as the stock market) are generally rising.

A type of investment fund that has a fixed number of shares that are publicly traded.

A fee paid by investors to a broker or other sales agent for their services, such as processing a stock trade.

Earnings on an investment's earnings. Over time, compounding can produce significant growth in the value of an investment.

An organization, usually a bank, that holds the securities and other assets of a fund.

The practice of investing broadly across a number of securities to reduce risk.

Estimated NAV, also known as Indicated Net Asset Value (iNAV) or Indicative Optimised Portfolio Value (IOPV) is calculated and published throughout the dealing day on a near real time basis. Estimated NAV is calculated by taking into account the market prices of individual holdings in a fund. This value can be used to provide an indication of what a fund is worth and can be compared with the fund's bid-ask spread to assess whether the fund is being priced fairly in the market.

The FER is to provide a measure of the total level of expenses incurred in investing through a MPF fund, including the costs applied at lower level collective investment schemes but noDividends, interest and/or other short-term gains paid to a fund's unitholderst including those expenses paid directly by the MPF scheme member.

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Dividends, interest and/or other short-term gains paid to a fund's unitholders

The goal that an investor and investment fund pursue together, e.g., current income, long term capital growth, etc.

The ability to have ready access to invested money.

The amount paid to an investment manager for its services.

Ongoing charges refer to the expenses paid by an ETF or mutual fund, such as management fees, trustee's fees and operational costs, such as custody, expressed as a percentage of a fund's assets. The methodology for ongoing charges over a year may differ for different funds or providers, please refer to the relevant prospectus or offering document for more details.

An ETF that holds physical securities, as opposed to gaining exposure through derivative positions to track the performance of the underlying benchmark. Over time, the manager then tracks changes in the index and manages cash flow from dividends. This strategy may therefore likely provide very close tracking with the underlying index. All assets are held in a custody account in the name of the trustee on behalf of the fund. Physical ETFs avoid the counterparty risk inherent in derivative strategies.

A collection of securities owned by an individual or institution (such as an investment fund) that may include stocks, bonds and money market securities.

A measure of the trading activity in a fund's investment portfolio (i.e. how often securities are bought and sold by a fund).

The official document that describes a fund to prospective investors. The Prospectus will contain information required by the relevant regulatory authorities, including investment objectives and risks.

A share of ownership (or equity) in a company or corporation.

An ETF that tracks the performance of the underlying benchmark through the use of derivatives, such as total return swaps. The ETF provider enters into an agreement with one or more investment banks or counterparties that agree to deliver the return of the underlying index, typically minus a spread, in exchange for the performance of a pool of securities that is held in the name of ETF. Should the counterparty default, this collateral pool, or assets held, should provide safety for investors in the ETF.

The difference in the performance of a fund as compared to its benchmark. Passive management attempts to minimise tracking error by replicating the benchmark as closely as possible. It is referred to as tracking error even when the fund has outperformed its benchmark.

A Unit Trust is a collective investment vehicle structured as a Trust. Investors' contributions to the Trust are pooled to enable those investors to participate in all the investments of the Trust.

TraHK is not like a typical Unit Trust offered to the public in Hong Kong because, among other things, Units may not be redeemed for cash and Units may only be created and redeemed in one million unit sizes through designated Participating Dealers. However, Units are designed to be traded on the Stock Exchange of Hong Kong (SEHK) like a normal listed share. Please refer to the Prospectus for details.

An index fund is a fund that seeks to provide returns that closely match the performance of an index such as the Hang Seng Index.

Yes. There are a lot of index-based investment products listed on stock exchanges around the world.

The Manager of TraHK is Hang Seng Investment Management Limited. The Manager is responsible for implementing adjustments in TraHK's portfolio of shares so that the composition and weighting of the shares held by TraHK closely correspond to the composition and weighting of the Hang Seng Index.

State Street Bank and Trust Company is the Trustee for TraHK. The Trustee's responsibilities include monitoring TraHK's investments and operations.

TraHK is designed to track the Hang Seng Index by holding shares in the companies included in the Hang Seng Index in substantially the same weightings as the Hang Seng Index.

With effect from 30 April 2024, the ongoing charges over a year has been changed to 0.07%.

The ongoing charges figure of Tracker Fund of Hong Kong (“TraHK”) is an estimate calculated based on the management fee, the trustee fee and other ongoing expenses for the year ended 31 December 2023, expressed as a percentage of the Fund's average Net Asset Value for the same period. It includes the fees of the Manager and the Trustee. Please refer to the “Fees, Costs and Expenses Payable by TraHK” section in the Prospectus for details. The actual figure may be different from the estimate. This figure may vary from year to year.

TraHK's Units are listed on the Stock Exchange of Hong Kong.

TraHK’s closing prices can be found on the Fund Information page of this site. Alternatively, as TraHK's Units are listed on the Stock Exchange of Hong Kong, the Fund's current price are provided by the Stock Exchange of Hong Kong and are also provided by financial data providers (such as Bloomberg) and brokerage firms. You should be aware that the trading price of a Unit may differ from the Net Asset Value (NAV) per unit.

The NAV of TraHK reflects the market value of TraHK's portfolio of Index Shares and other investments and is calculated on a per Unit basis by dividing the total NAV of TraHK by the number of Units outstanding. The NAV of TraHK will be calculated after the close of trading on the Stock Exchange of Hong Kong at the end of each dealing day. Please be aware that the NAV per Unit may differ from the trading price of a Unit on the Stock Exchange of Hong Kong.

As TraHK is listed on the Stock Exchange of Hong Kong you can place an order to buy or sell Units through a broker during the trading hours as you would in the case of a share listed on the Stock Exchange of Hong Kong. The trading price of a TraHK Unit may differ from the NAV per Unit and there can be no assurance that a liquid secondary market will exist for the Units.

You will be liable to pay stamp duty on any Units that you buy and sell in the secondary market.

A Participating Dealer is any broker or dealer who has entered into a Participation Agreement with the Trustee, the Manager, Hong Kong Securities Clearing Company Limited and HK Conversion Agency Services Limited regarding arrangements for the issue of Units for Index Shares and for the redemption of Units. The Participating Dealer creates fund Units in large increments known as creation units by assembling the underlying securities of the fund in their appropriate weightings to reach creation unit size and then delivering those securities to the fund in-kind. In return, the Participating Dealer receives fund Units which are then introduced to the secondary market where they are traded between buyers and sellers through the exchange.

Please refer to Participating Dealers List for more details. This list is provided for informational purposes only and is subject to change from time to time.

The term "redeem", in relation to a normal Unit Trust, means the sale of your Units back to the Manager of the Trust (who might then cancel the Units or resell them to a new investor at the prevailing net asset value). Typically, there is a relatively low minimum redemption size and a redemption/exit fee may or may not be payable. For more information, see questions below regarding redemption of TraHK Units.

The process of redeeming Units for Index Shares is called "redemption". However, the redemption process is used almost exclusively by large institutions rather than retail investors and will only be available through a limited number of designated List of Participating Dealers. You should note that you would need one million Units in order to redeem your Units for Index Shares in the form of an Index Basket. No cash redemptions will be permitted.

The normal way for investors holding less than one million Units to sell their Units will be on the Stock Exchange of Hong Kong via a broker at any time during the trading day.

No cash redemptions will be permitted, but you can place an order to sell your Units on the Stock Exchange of Hong Kong via a broker at any time during the trading day like any normal share listed on the Stock Exchange.

No. The minimum redemption amount is one million Units. The normal way for investors holding less than one million Units is to place an order to sell their Units on the Stock Exchange of Hong Kong via a broker at any time during the trading day.

Yes, if you satisfy the criteria for redemption, (e.g. being a participating dealer yourself and more than one million Units), the Index Shares you receive as proceeds of redemption can be sold on the Stock Exchange of Hong Kong like any other listed share. Ownership is transferred to you in the redemption process. Please note that no cash redemption will be permitted.