BRIGHT SMART
01428
MEITUAN-W
03690
HORIZONROBOT-W
09660
4
POP MART
09992
5
BABA-W
09988
Help Center Trading Ability Trading in HK Market ETF How does the ETF track the performance of the underlying index
How does the ETF track the performance of the underlying index
Most ETFs track the underlying indexes through the following three strategies:
1. Fully Replicate The Strategy
Such as the Tracker Fund (02800). The fund manager will invest in these index stocks according to the proportion of the benchmark index components. Fund managers can closely replicate the performance of benchmark indexes. The advantage of this replication strategy is that it enables the ETF to achieve the most accurate tracking, while the disadvantage is that the cost and transaction fees are higher, especially when the index constituents are numerous or less circulated.
2. Representative Sampling Replication Strategy
Such as the S&W CSI Hong Kong 100 Index Fund (02825). The fund manager builds a portfolio that has similar returns, risk, market capitalization, and investment characteristics to the benchmark index. ETFs using this strategy is less expensive than the former because the portfolio holds fewer shares. However, it does not follow the index as closely as a full replication strategy, so there may be a degree of tracking error.
3. Synthetic Replication Strategies
Such as the Leading Global ETF (02812). ETFs using this strategy does not necessarily hold constituent stocks directly, but rather use derivatives such as equity-linked swaps to achieve a low-cost, performance-tracking effect. The fund manager is able to obtain an accurate performance of the benchmark index from the issuer of the equity-linked swap, thus ensuring near-full performance and low tracking error, but with higher counterparty risk, valuation risk, and liquidity risk.
Overview
Market Insights
Discussing
關稅風暴暫離高壓區！市場能否迎來反彈？
當地時間4月22日，美國總統特朗普公開承認美國目前對中國出口商品的關稅過高，預計稅率將大幅降低；美國財政部長貝森特也表示中美雙方關稅戰將很快降溫。4月25日，特朗普表示將爲不同國家設定「公平的」關稅稅率。特朗普此次對華關稅態度的轉變，能否平息市場恐慌情緒？關稅拉鋸戰最終結局如何？ Show More
Food流油
Apr 14 15:43
"Leaving the Group - Raising Taxes - Tweeting: The 'Money Making Strategy' of the Most Wild Gemini in Contemporary Times"
Investment Course
Choose stocks based on financial reports
Quickly master financial season learning guidelines
When the financial season comes, company stock prices are the most likely to rise and fall, and many excellent investors will see the financial season as a good
[2025.2] How should NVIDIA's performance be viewed? The key indicator to watch for short-term stock prices is this.
NVIDIA has been one of the best-performing Technology giants in the US stock market over the past two years, and since 2024, its stock price has experienced sig
How to view Tesla's performance in January 2025? Pay attention to these four key points.
It's earnings season for US stocks again. The performance of giant companies not only affects their own stock prices but also influences the overall trend of th
- No more -