Lion-OCBC Securities Hang Seng TECH ETF

[5408854088]

INVESTORS will have easier access to Hong Kong-listed technology stocks next month, as OCBC works towards the listing of Singapore's first tech-focused exchange-traded fund on the Singapore Exchange.

The Lion-OCBC Securities Hang Seng TECH ETF will track the Hang Seng TECH Index, which is made up of the top 30 technology companies listed in Hong Kong by market capitalisation.

As at end-October, the index's five largest constituents by weight were Tencent, Meituan Dianping, Sunny Optical, Alibaba and Ali Health.

The index returned 36.25 per cent in 2019 and 35.30 per cent in the first half of this year.

Investors will be able to trade as few as 10 units each time. As the issue price is S$1.34 per unit, this means a single trade can cost less than S$20 - excluding commissions and fees. The ETF will also be available in US dolllars, priced at US$1 per unit.

https://www.businesstimes.com.sg/co...list-singapores-first-tech-focused-etf-on-sgx

The initial offering period runs from Nov 23 to Dec 7, and the target list date on the Singapore bourse is Dec 10.

The ETF will be managed by OCBC's asset management arm Lion Global Investors. The bank's securities trading arm OCBC Securities is a participating dealer and strategic partner.

Other participating dealers are iFAST Financial, Phillip Securities and UOB Kay Hian.

OCBC Securities said its customers have shown increased interest in the Hong Kong market, with trading volumes up more than 30 per cent on-year in the year to October. Chinese technology companies have consistently been among the top traded counters.

OCBC Securities managing director Wilson He noted technology stocks have benefitted from changes in consumer behavior as well as digital transformations of businesses.

The ETF also gives investors a means of expressing their view on fundamental changes happening in geopolitics, said Lion Global Investors' chief executive officer Gerard Lee.

https://www.businesstimes.com.sg/co...list-singapores-first-tech-focused-etf-on-sgx

 

[WoShiPro]

Oh **** this is expensive.

Where did u see this information btw?

https://www.lionglobalinvestors.com/en/funds/lion-ocbcsec-hangseng-tech-etf/index.html

 

[5408854088]

Just read through the prospectus. Ipo need to purchase a minimum of 500k units. Crazy for retail investor. Retail can only buy once it's listed bah..

initial offering period. participating dealers may take in orders at smaller lot size.

 

[5408854088]

How to Gain Access to the Fast-Growing Chinese Technology Companies Through the Hang Seng TECH Index
https://blog.seedly.sg/hang-seng-tech-index-chinese-technology-growth-companies-etfs/

3 Reasons to Invest in the Hang Seng TECH Index
https://www.poems.com.sg/market-journal/3-reasons-to-invest-in-the-hang-seng-tech-index/

 

[D-Aced]

3067 HK

Lowest expense ratio for the same tech ETF, thank me later

 

[MrSinkie95]

ipo for etfs usually wont pop much.. buy from mkt better

 

[YouHeypiCanLiao]

Usd pls pls pls lol

3067 HK

Lowest expense ratio for the same tech ETF, thank me later

 

[skpuppy]

Usd pls pls pls lol

Simi USD?....

 

[madtari]

Shouldn't the management fee already included inside the expense ratio already?

Management fees 0.45% + expense ratio 0.68% quite expensive..

 

[goldnut]

The only good thing is the smaller lot size and lower pricing.

 

[goldnut]

realised theres a few of these so called HANG SENG tech etf like 3033, 3067 and 3032 and now this OCBC ver.

Any advise whats the difference ?

3033 is by CSOP, 3032 by Hang Seng IM, 3067 by Blackrock.

 

[5408854088]

Shouldn't the management fee already included inside the expense ratio already?

Yes, usually it's inclusive. So can take it as 0.68%, not 0.45% + 0.68%

 

[RedsYWNA]

The only good thing is the smaller lot size and lower pricing.

Key attraction for me is the ability to use SRS to invest in this ETF.

Can split the yearly SRS investment betw S27 and this,esp as you can't use up the entire $15,300 cleanly via S27.

 

[goldnut]

Key attraction for me is the ability to use SRS to invest in this ETF.

Can split the yearly SRS investment betw S27 and this,esp as you can't use up the entire $15,300 cleanly via S27.

Liquidity may be an issue

 

[skpuppy]

3033 is by CSOP, 3032 by Hang S Dr Yang Kuang Ying eng IM, 3067 by Blackrock.

3067hk has the lowest management fees and is rather liquid. 3033hk should be largest AUM. I think this Lion etf will be like S27.SI. Not liquid and I believe tracking error quite huge

 

[goldnut]

3067hk has the lowest management fees and is rather liquid. 3033hk should be largest AUM. I think this Lion etf will be like S27.SI. Not liquid and I believe tracking error quite huge

3033 also has 5x trading volume. Would go for this but expense ratio is 1%

 

[Kojo0403]

Good that it offers SGD counter, so no need to do FX conversion.
And it does not pay dividend.. save trouble on reinvesting especially when using SRS.

Main downside is TER is 0.68% but i guess as its fund size gets bigger, it will go lower.

 

[reddevil0728]

3033 also has 5x trading volume. Would go for this but expense ratio is 1%

Need to balance the trade off... unless you trade it on a frequent basis, don’t need such high volume also

 

[skpuppy]

Good that it offers SGD counter, so no need to do FX conversion.
And it does not pay dividend.. save trouble on reinvesting especially when using SRS.

Main downside is TER is 0.68% but i guess as its fund size gets bigger, it will go lower.

(1) The fund have to use fx to buy listed stocks in hk. No? If they just buy 3067hk or 3033hk to mirror the index then quite strange right?

(2) How accurate can they track the index?

 

[Kojo0403]

(1) The fund have to use fx to buy listed stocks in hk. No? If they just buy 3067hk or 3033hk to mirror the index then quite strange right?

(2) How accurate can they track the index?

I am sure there will be FX conversion to buy into the HK underlying when doing a creation. But then again as an institution their FX charges should be competitive.

Its just 30 stocks.. will be odd if the fund manager of GE can't even track a 30 stocks index properly.