Education

Global X by Mirae Asset Hong Kong currently offers 14 products – including 9 ETFs ranging from thematic growth, core, income to commodities, as well as 5 L&Is. Investors can trade the units of these products on the Hong Kong Stock Exchange as easy as trading with stocks.

Our products seek to provide an investment tool with the following features to our investors:

Flexibility - Our products offer choices for longer-term buy and hold investors, as well as tactical trading strategies, such as sector rotation and hedging.

Lower cost - At a fraction of the cost of traditional mutual funds, our products offer lower cost solutions for both growth-oriented and income-focused investors.

Insightful support - Our products are managed by Mirae Asset Global Investments (Hong Kong) Limited, with the strong support of the Mirae Asset Financial Group affiliates in various countries such as Korea, the United States, Canada and Australia which have a robust network and experience in ETFs and L&Is.

ETFs are one of the fastest growing categories of investment products in the world. An ETF is an index-replication tool that is quoted and traded on a stock exchange. ETFs are built like managed funds, but trade like shares, meaning that pricing is transparent and that the products can be bought and sold throughout any trading hours just like ordinary shares. ETFs generally aim to track as closely as possible the performance of a given index. They are transparent, liquid, cost-efficient and flexible investment tools – designed to be attractive to both individuals and institutional investors.

Simplicity - ETFs help investors gain exposure to a range of investment strategies that can be executed as simply as buying any share.

Liquidity - ETFs are open-ended funds, meaning the number of units on issue can be increased or decreased in response to daily demand. Units can be bought and sold at any time throughout the trading hours. Multiple market makers enhance this daily liquidity and provide robust bid-offer spreads. ETFs have similar liquidity characteristics to the underlying shares that comprise the relevant index.

Transparency - Most ETFs aim to closely track the performance of a specified index. They have a transparent fund and cost structure. Information on constituents and assets held by the ETF is published on the relevant ETF website, giving investors an up-to-date view of the index and assets underlying the ETF.

Cost-effectiveness - Because most ETFs aim simply to track the performance of an index, there are no in-built "active management" fees for non-active ETFs and generally ETFs therefore have significantly lower fees than actively managed mutual funds.

Diversification - ETFs are generally designed to track indices, most of which are comprised of dozens or hundreds of or even more securities. So instead of 'putting all your eggs in one basket', ETFs allow you to invest in entire countries or sectors to reduce your exposure to any single stock.

Global Exposure - Some ETFs invest in a pool of overseas securities, offering investors exposure to a foreign market.

In terms of replication methodology, there are two types of ETFs: Physical ETFs and Synthetic ETFs. A Physical ETF invests in securities that replicate or represent the composition of the index it tracks, and a Synthetic ETF uses financial derivative instruments (such as swaps and performance-linked structured products issued by counterparties) to track index performance. Since Synthetic ETFs invest in over-the-counter derivatives issued by counterparties, these ETFs are exposed to the credit risk of the derivative counterparties.

Our products are traded on the Hong Kong Stock Exchange. They can be bought or sold like any share through any broker, investment adviser or brokerage account. There is no need to open a separate trading account. Our products can be traded at any time during Hong Kong Stock Exchange trading hours, using the trading techniques applicable to shares (e.g. market orders, limit orders). For investors buying or selling in larger volumes, they can also be bought and sold through our Participating Dealers.