Index-based ETFs
Index-based ETFs are available in nearly every style and asset class, covering virtually every segment of the domestic and global equity and fixed income markets. They range from products that invest in the widest coverage of the markets, to those that invest in specific industries.
There are style ETFs that cover the growth and value spectrum and those that track certain market capitalizations. International ETFs cover the global markets and offer exposure to a single country or region of the world. And, finally, there are bond ETFs that cover a variety of duration, credit quality, and maturity ranges
Actively managed ETFs
These types of ETFs are managed to meet a particular investment objective. The portfolio manager actively manages the assets within the ETF to achieve that objective. Actively managed ETFs represent only a small portion of the overall industry.
Commodity and currency ETFs
These ETFs invest in the commodities and currency markets through either physical assets or through the futures markets, allowing investors to gain exposure to alternative investments such as agricultural products, precious metals, energy, and currencies.
Leveraged Products
These are products that use financial derivatives and debt to improve upon the returns of an underlying index. In Hong Kong, Leveraged Products attempt to produce twice times the daily return of their underlying benchmark. This means that losses will also be amplified by two times the benchmark return.
Inverse Products
These products use derivatives to profit from a decline in the value of an underlying asset or instrument. These products are designed to move in the opposite direction from the market they are trying to mirror. Investing in inverse products is popular for short-term traders looking to hedge longer investments or take advantage of falling markets.
Please note that leveraged and inverse Products typically are designed to track a multiple of, or the inverse of, a daily return of the index. These products are not designed to sustain this same multiple or inverse of index return over longer time periods.
Currently, Index-based, Commodity ETFs and Leveraged & Inverse products are available in Hong Kong