Best tracking fund?

[pinko]

My impression is that right now a tracking fund might give the highest revenue with the minimum risks. Which tracking fund do you think is best?

* 2800.HK TraHK -- Segue o Hang Seng Index
* 2801.HK China Tracker -- Segue o MSCI China Index
* 2819.HK ABF HK IDX ETF -- Segue o iBoxx ABF Hong Kong Index
* 2821.HK ABF Pan Asia Bond Index Fund -- Segue o iBoxx ABF Pan-Asia Index
* 2823.HK A50 China Tracker -- Segue o FTSE/Xinhua China A50 Index
* 2828.HK HS H-Share ETF -- Segue o Hang Seng China Enterprises Index
* 2833.HK HS HSI ETF -- Segue o Hang Seng Index
* 2836.HK SENSEXINDIA ETF -- Segue o BSE Sensitivity Index
* 2838.HK Hang Seng FTSE/Xinhua China 25 Index ETF -- Segue o FTSE/Xinhua China 25 Index

[chimo]

give the highest revenue with the minimum risks.

As Lehman mini-bond holders found out the hard way, this is never possible. You want high revenue there will be risk. You want low risk expect low return.

But to answer your question I like 2800.HK
It even gives dividends, too!

2828.HK is more linked to China and therefore has a higher risk.

[PDLM]

2800 clearly - it pays dividends as if you held the underlying shares. None of the others does.

[silkentouch]

2800 clearly - it pays dividends as if you held the underlying shares. None of the others does.

Mate, If I want "dividends" I can always partially sell my portfolio. Why go for a fund which puts my money back into cash without asking me?

And to answer the original question:
Yes, you can get higher return with lower risk. Its called diversification. Simplistically speaking, a global market portfolio would give you the highest return with the lowest risk.

If I were you, I would try to do the following:
If you are really rich and not so young, invest around 60% of your money in Tracker Funds for the global equities (MSCI, e.g.), around 30% of your money in tracker funds for global bonds (haven't seen a good one though, you may want to check some out) and around 10% in commodities (There are some great LYXOR commodity ETfs)

If you are young and not so rich, go for the cheapest (i.e. which charges lowest management fee) HK/China equities index...

*I am not a financial advisor. This is not a financial advice. I am not soliciting any funds. I am not responsible for the performance of your portfolio. Please do not take financial advice from strangers on the internet.*

[gilleshk]

As Lehman mini-bond holders found out the hard way, this is never possible. You want high revenue there will be risk. You want low risk expect low return.

But to answer your question I like 2800.HK
It even gives dividends, too!

2828.HK is more linked to China and therefore has a higher risk.

It's a matter of reading it properly...by saying"the minimum risk" in the context of the sentence, it doesn't mean minimum risk or low risk. It means the safest combination of higher return and acceptable risk.

[beachball]

2800 clearly - it pays dividends as if you held the underlying shares. None of the others does.

I think one cannot generalize on the 'best' ETF. Would think it depends very much on the specific situation, including which index does the OP want exposure to (which in turn depends on what else s/he has in his/her portfolio, among other things).
Same applies for dividends - depends on the individual whether one wants them distributed or reinvested...

[PDLM]

Eh? If you have a choice between a fund which tracks (i.e. whose value goes up and down at the same rate as the HSI) the Hang Seng and one which tracks the Hang Seng plus gives 5-6% dividends then you would be mad to take the first option.

[beachball]

Eh? If you have a choice between a fund which tracks (i.e. whose value goes up and down at the same rate as the HSI) the Hang Seng and one which tracks the Hang Seng plus gives 5-6% dividends then you would be mad to take the first option.

I don't think that was silkentouch's point/impression - his understanding being that dividends received by the fund get reinvested instead of distributed. Anyway, the Hang Seng Index ETF (2833) also distributes dividends.

Anyway (to state the obvious), my point was that all the other ETFs listed track other indices than the HSI, so by investing in any of them one invariably takes a view on relative performance of these various indices (effectively different portfolios of shares).

[pinko]

Thank you all! :band

all the other ETFs listed track other indices than the HSI, so by investing in any of them one invariably takes a view on relative performance of these various indices (effectively different portfolios of shares).

Which ones do you people think will show the highest profits within the next 3 years?