Hang Seng Investment - Hang Seng Exchange Traded Fund

What is HSI ETF?

Hang Seng Index ETF (the "HSI ETF") is an exchange traded fund and Units of the HSI ETF can be traded like listed shares on the Stock Exchange of Hong Kong Limited (the "SEHK"). Its investment objective is to track, as closely as practicable, the performance of the Hang Seng Index (the "Index") by holding a portfolio of the constituent stocks of the index.


	Unit Price of HSI ETF				Determined by the forces of market supply and demand (Not applicable to in-kind transactions conducted through Participating Dealers)


	Trading Channel				Trade through stock brokers or banks on the SEHK


	Trading Hours				Traded during SEHK trading hours


	Minimum Trading Size				100 Units


	Fees for acquisition and disposal of Units				- Brokerage^# - SFC Transaction Levy - SFC Investor Compensation Levy - SEHK Trading Fee - Stamp Duty - Purchase Order Handling Fee^#(if any)


	Fund Operating Cost				Management Fee, Trustee Fee and Other Expenses^*
	# Varies from broker to broker * Please refer to the Hong Kong Offering Document of the HSI ETF for full details.

CLOSELY TRACK INDEX PERFORMANCE

The HSI ETF invests in the constituent stocks of the Index in substantially the same weightings as those stocks have in the Index. Hence, investors can have the opportunity to receive investment returns that track, as closely as practicable, the performance of the Index by holding the HSI ETF.

DIVERSIFICATION

HSI ETF represents an investment portfolio, which helps its investors to indirectly invest across a basket of 33 constituent stocks of the Index for diversification and risk reduction.

TRADE LIKE LISTED SHARES

Trading of HSI ETF Units is as convenient and flexible as trading of shares listed on the SEHK. Investors can trade HSI ETF Units anytime during trading hours of the SEHK.

HIGH TRANSPARENCY OF INVESTMENT PORTFOLIO

The fund manager of HSI ETF primarily adopts a replication strategy and the HSI ETF invests in the constituent stocks of the Index in substantially the same weightings as those stocks have in the Index. Information on the constituent stocks of the Index is public information which investors can easily obtain. Generally speaking, unlike traditional actively managed investment fund, the fund manager of HSI ETF does not select stocks or investment instruments based on their own investment judgement. Hence, the investment portfolio of HSI ETF is comparatively more transparent than that of the traditional actively-managed investment fund.

LOW INVESTMENT AMOUNT

The board lot size of the HSI ETF is 100 Units. Assuming that the Hang Seng Index is at 12,000, each Unit of HSI ETF would be traded at around HK$120 and it would cost around HK$12,000* to buy 1 board lot of HSI ETF Units. Hence the cost per board lot is approximately the same as the level of the Index which is easy to remember.

LOW TRANSACTION COSTS

The transaction cost of HSI ETF Units is comparatively lower than that of the traditional investment fund. Investors only need to pay brokerage and securities trading fees when they trade HSI ETF Units. For details, please refer to the question: "How can I buy or sell Units in Hang Seng's ETF(s)?" under "Questions relating to the 3 ETFs managed by Hang Seng Investment Limited" of the FAQs.

OPPORTUNITY TO RECEIVE REGULAR DIVIDENDS

The Manager of the HSI ETF intends to distribute cash dividends (if any) to investors on a semi-annual basis^#

* This is only a rough approximation and is for reference only (brokerage and other transaction fees not included). The actual proportion may vary due to market demand and supply for the Units, as well as other factors. The Manager, Hang Seng Investment Management Limited, shall not be liable for such rough approximation.

# The Manager shall publish details of dividend declaration dates and amount, ex-dividend dates and dividend payment dates on the website of the HSI ETF (www.hangseng.com/etf) and via SEHK's website (www.hkex.com.hk).

Prices of investment funds and stocks may go down and up. Investors should note that investment involves risks. Investors should be aware that exchange traded funds are different from a typical unit trust and that the offering document of the relevant fund should be read in detail before making any investment decision.