Moves to attract more overseas investors to Tracker Fund of Hong Kong
The exchange-traded fund, which tracks Hang Seng Index’s performance, has risen by 46 per cent in assets under management over past two years
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Four market thought leaders discuss success of Tracker Fund of Hong Kong
Since its launch 25 years ago, the Tracker Fund of Hong Kong (TraHK) – the first exchange-traded fund (ETF) listed locally – has continued to break new ground.
Its introduction helped restore market stability and confidence in the wake of the Asian financial crisis and, by proving a hit with investors, successfully paved the way for other ETFs and enhanced the city’s status as an international financial centre.
Having demonstrated long-term resilience, the aim now is to make the fund both stronger and better. To this end, a number of initiatives are under way to attract more overseas investors, ease online trading and explore untapped opportunities in Hong Kong, the Greater China region and beyond.
Simply put, TraHK is a “basket” of constituent shares from the Hang Seng Index, which mirrors the movements of the overall Hong Kong stock market. It can be easily bought and sold by corporate, institutional and retail investors, and gives them exposure to different industries while achieving diversification through over 80 constituents.
“The fund has gone from strength to strength,” says Rosita Lee, director and CEO of Hang Seng Investment, which has overseen the day-to-day operation of TraHK since September 2022. “It is a very reliable and efficient investment tool and has come to have a very special meaning for local people, in some way representing the spirit of Hong Kong.”
In part, this is down to the fund’s origins. It came about as a direct result of the Asian market turmoil of 1998 when the Hong Kong government decided to step in and buy constituent stocks of the Hang Seng Index.
