The CSOP Hang Seng TECH Index ETF (the “Sub-Fund”) is a sub-fund of the CSOP ETF Series (“Trust”), which is an umbrella unit trust established under Hong Kong law. The Sub-Fund is a passively managed index tracking ETF authorised under Chapter 8.6 of the Code on Unit Trusts and Mutual Funds. The units of the Sub-Fund are traded on the Stock Exchange of Hong Kong Limited (the “SEHK”) like stocks.
- The Sub-Fund is not principal guaranteed and your investments may suffer losses. There is no assurance that the Sub-Fund will achieve its investment objective.
- The Sub-Fund is not actively managed. The Manager will not have the discretion to adapt to market changes due to the inherent investment nature of the Sub-Fund. Falls in the Underlying Index are expected to result in corresponding falls in the value of the Sub-Fund.
- The Sub-Fund’s investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors.
- The Hang Seng TECH Index (the “Underlying Index”) is a new index. The Sub-Fund may be riskier than other exchange traded funds tracking more established indices with longer operating history.
- The Sub-Fund’s investments are concentrated in companies with a technology theme. Many of the companies with a high business exposure to a technology theme have a relatively short operating history. Technology companies are often characterised by relatively higher volatility in price performance when compared to other economic sectors. Companies in the technology sector also face intense competition, and there may also be substantial government intervention, which may have an adverse effect on profit margins. Rapid changes could render obsolete the products and services offered by these companies. These companies are also subject to the risks of loss or impairment of intellectual property rights or licences, cyber security risks resulting in undesirable legal, financial, operational and reputational consequences.
- The value of the Sub-Fund may be more volatile than that of a fund having a more diverse portfolio of investments.
- The Sub-Fund may be exposed to risks associated with different technology sectors and themes(including industries, consumer discretionary, healthcare, financials, information technology, internet (including mobile), fintech, cloud, e-commerce, or digital). A downturn in the business for companies in these sectors or themes may have adverse effects on the Sub-Fund.
- The Underlying Index is subject to concentration risk as a result of tracking the performance of securities incorporated in, or with the majority of revenue derived from, or with a principal place of business in, the Greater China region. The NAV of the Sub-Fund is therefore likely to be more volatile than a more broad-based fund, such as a global or regional fund, as the Underlying Index is more susceptible to fluctuations in value resulting from adverse conditions in a single region.
- Securities lending transactions may involve the risk that the borrower may fail to return the securities lent out in a timely manner and the value of the collateral may fall below the value of the securities lent out.
- Although the Manager will use its best endeavours to put in place arrangements so that at least one market maker will maintain a market for the units and that at least one market maker gives not less than 3 months’ notice prior to terminating market making arrangement under the relevant market maker agreement, liquidity in the market for the units may be adversely affected if there is no or only one market maker for the units. There is also no guarantee that any market making activity will be effective.
- The Sub-Fund may be subject to tracking error risk, which is the risk that its performance may not track that of the Underlying Index exactly. This tracking error may result from the investment strategy used, and fees and expenses. The Manager will monitor and seek to manage such risk in minimising tracking error. There can be no assurance of exact or identical replication at any time of the performance of the Underlying Index.
- The trading price of the units on the SEHK is driven by market factors such as the demand and supply of the units. Therefore, the units may trade at a substantial premium or discount to the Sub-Fund’s NAV.
- As investors will pay certain charges (e.g. trading fees and brokerage fees) to buy or sell units on the SEHK, investors may pay more than the NAV per unit when buying units on the SEHK, and may receive less than the NAV per unit when selling units on the SEHK.
- The fund may be terminated early under certain circumstances, for example, where the Underlying Index is no longer available for benchmarking or if the size of the Sub-Fund falls below RMB100 million. Investors may not be able to recover their investments and suffer a loss when the Sub-Fund is terminated.
- Payment of dividends out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distributions involving payment of dividends out of capital or effectively out of capital of the Sub-Fund may result in an immediate reduction of the NAV per unit of the Sub-Fund.
TECHNOLOGY NEVER CEASE TO THRIVE
30 Leading Tech Stocks At A Few Thousand Only
Hang Seng Tech Index2Underlying index
2 "the Index"
HKD6~81Inception Price Per Share(Approx.)
Hang Seng TECH Index ETF
The first ETF tracking the newly launched Hang Seng TECH Index
Investors around the world are enthusiastic about the Hang Seng Tech Index. As the world’s first ETF to track the Hang Seng Tech Index, 3033.HK will help you get ahead and seize the investment opportunity
Technology never cease to thrive
Constituent technology stocks keeps updating, individual stocks may rise and fall, but technology concept will never be outdated 3033.HK fully replicates the Hang Seng Tech Index3 to capture the performance of Hong Kong listed top technology or innovative companies
Capture the Growth of Tech Companies with Strong Innovation
Consisting of 30 top HK-listed technology companies that permeated each aspect of our life, including TENCENT, BABA-SW, MEITUAN-W etc. 4
Source: Hang Seng Indexes Company Limited
Good diversification, lower volatility
Tech stocks have higher volatility than those traditional large cap stocks. Investing in a portfolio allow investors to enjoy a lower volatility than investing in individual stock.
Single-stock Average Volatility*58.65%Hang Seng TECH Index constituents34.14%Hang Seng Index constituents
Hang Seng TECH Index 30 Constituents Volatility**36.42%Hang Seng TECH Index overall
*Source: CSOP Research, #Annualized S.D. for 260 trading days, till 31-Jul-2020
**Exclude 4 constituents which are listed in HKEX less than 260 trading days
Lower minimum investment
Minimum investment of a lot of Top 5 Hang Seng TECH Index constituents each is more than HKD 100,0005. Around 1,800 HKD6 can fully capture the performance of 30 Hong Kong-listed technology or innovative companies. Investment is more flexible and risks is more diversified.
Minimum Investment (HKD)*HKD461,083Buy 1 lot for each constituentsHKD114,744Buy 1 lot for each of the top 5 constituents~HKD1,800Buy 1 lot of the CSOP Hang Seng TECH Index ETF
Breakdown of Minimum investment of the Hang Seng TECH Index constituents (No. of constituents)
*Estimated data for reference only
Source CSOP Research as of July 31, 2020
- Leading ETF Issuer in Hong Kong
Among the top 10 most traded ETFs/ETPs in Hong Kong from 1 Jan 2018 to 31 Dec 2019, ETFs/ETPs from CSOP takes up half positions
Most Actively Traded ETFs/ETPs in HK （2018.1-2019.12）
Stock Code Name Average Daily Turnover（HKD million） 1 2800 Tracker Fund of Hong Kong 1388 2 2828 Hang Seng China Enterprises Index ETF 709 3 2822 CSOP FTSE China A50 ETF* 704 4 3188 ChinaAMC CSI 300 Index ETF 636 5 2823 iShares FTSE A50 China Index ETF 589 6 7500 CSOP HSI Daily (-2x) Inverse Product* 402 7 7300 CSOP HSI Daily (-1x) Inverse Product* 164 8 7200 CSOP HSI Daily (2x) Leveraged Product* 115 9 2840 SPDR Gold Trust 27 10 7288 CSOP HSCEI Daily (2x) Leveraged Product* 27
Source: Bloomberg, from 1 Jan, 2018 to 31 Dec, 2019
*Issued by CSOP Asset Management Limited
4 Source: Hang Seng Indexes Company Limited, Bloomberg, CSOP research, as of 20 Aug 2020
5 Source: CSOP Research, as of July 31, 2020
6 Estimated data for reference only
- 1. Flagship Index: A new flagship index alongside the Hang Seng Index and the Hang Seng China Enterprises Index
- 2. TECH thematic: Reflecting the performance of top 30 HK-listed companies coming from the tech or innovative segments
- 3. High Quality: Selecting constituents of strict screening
- 4. Good Diversification: Constructed by capping 8% on individual securities
- 5. Close Tracking: Introducing quarterly review and IPO Fast Entry Rule to closely reflect market movements
Underlying Index Information#
→ Greater China companies at HKEX mainboard
→ Velocity Test
→ Sector: IT/ Consumer Discreationary/ Industrials/ Financials/ Healthcare
→ Theme: Cloud/ Digital/ E-commerce/ Fintech/ Internet
→ Innovation: Tech-enabled business & R&D investment >=5% or Revenue y-o-y growth >= 10%
→ A free float adjusted market capitialization weighted index
|Number of Constituents||Top 30 by market cap after filtering|
|Weight Cap||8% for single stock|
|Rebalance||Quarterly review + IPO Fast Entry Rule|
|Launch Date||July 27, 2020|
|Base and Base Date||at 3,000 on December 31, 2014|
|Market Cap||HKD 936.99 Billion as of July 24, 2020|
#Source: Hang Seng Indexes Company Limited, as of August 27, 2020
Index Price Return^
^Source: CSOP Research, Bloombery, as of 31 July 2020. Past performance figures are not indicative of future performance. All information for an index prior to its launch date is back-tested, back-tested performance reflects hypothetical historical performance
#The hypothetical performance figure is for illustrative purpose only. Not indicative of actual future performance, which could differ substaintially.
Top 10 Constituents