Like Tree6Likes

Investing in ETFs in HK- newbie questions

Reply
Page 2 of 2 FirstFirst 1 2
  1. #11

    Join Date
    Feb 2015
    Location
    Hong-Kong
    Posts
    5,908

    Only if you don't have USD100k equivalent (or more) in assets with them. Otherwise the monthly fee is waived.


  2. #12

    Join Date
    Jun 2011
    Posts
    19

    Hi, I’m new to investing and looking to buy the hk tracker 2800 through my hsbc investment account. I see that the account only allows me to purchase a minimum lot of 500, which works out to around 13k hkd. I would only like to contribute hkd 5,000 a month - my questions is, do I need to save up to get the 13k, or is there any way to purchase the fund in smaller lots?

    thanks


  3. #13

    Join Date
    Jul 2004
    Posts
    3,329
    Quote Originally Posted by jamo82
    Hi, I’m new to investing and looking to buy the hk tracker 2800 through my hsbc investment account. I see that the account only allows me to purchase a minimum lot of 500, which works out to around 13k hkd. I would only like to contribute hkd 5,000 a month - my questions is, do I need to save up to get the 13k, or is there any way to purchase the fund in smaller lots?

    thanks
    https://www.hsbc.com.hk/investments/...ading/monthly/
    shri and jrkob like this.

  4. #14

    Join Date
    Oct 2006
    Location
    Hong Kong
    Posts
    13,662

    Other option is the HSBC investment fund. Very low barrier of entry.


  5. #15

    Join Date
    Aug 2012
    Posts
    63
    Quote Originally Posted by jrkob
    @shri, I had a look at the links you provided in your thread.
    Nothing I read suggests that VUSA hedges the GBP/USD risk back into GBP: although settled in GBP for the convenience of UK investors who naturally own GBP, the exposure is truly a USD exposure.

    (this also means that the above statement from limelicious is incorrect).
    Was thinking about this the other day. How is the GBP/USD exposure quantified and hedged in practice?

    Is the hedging strategy independent of the fx exposure of the underlying companies?

  6. #16

    Join Date
    Feb 2015
    Location
    Hong-Kong
    Posts
    5,908
    Quote Originally Posted by avocado22
    Is the hedging strategy independent of the fx exposure of the underlying companies?
    If an ETF wants to hedge a USD-exposure back to GBP, the amount to hedge will be the market value of the assets denominated in USD.
    In the world of ETFs, the 2 main ways I am aware of to hedge an FX exposure are FRAs (Forward Rate Agreements, also known casually as FX swaps) and FX Futures.
    traineeinvestor likes this.

  7. #17

    Join Date
    Jan 2020
    Posts
    6

    Quick question, does investing into US ETFs mean you have to pay withholding tax on the dividends (i.e. for SPY, VTI, VOO etc.)?

    Are they exempt from dividend withholding tax if I'm in Hong Kong (and a non us resident)?

    Thanks.


  8. #18

    Join Date
    Dec 2002
    Location
    ???
    Posts
    29,733

    Simplified version: yes

    However a Irish domiciled etf has a lower tax rate. Quite a few threads discussing this and there is a sticky thread in here with a recent study showing the tax treatment for various countries.


Reply
Page 2 of 2 FirstFirst 1 2