Exchange-Traded Funds
An Exchange-Traded Fund (ETF) is an open-ended investment fund listed and traded on a stock exchange.
When an investor buys a single lot of an ETF, it is equivalent to simultaneously buying a basket of specific assets (such as stocks, bonds, commodities, or other assets) in proportion to their portfolio. It aims to track the performance of a specific underlying index (such as the Hang Seng Index or the S&P 500 Index).
ETFs typically contain a variety of stocks or bonds, so the impact of poor performance from a single asset is relatively small. This is because they combine the risk diversification characteristics of mutual funds with the high intra-day liquidity of stocks.
Potential Risks: Investment involves risks. Investment value may rise or fall. There are a number of risks associated with the ETFs that investors should be aware of when considering to invest, investors should read the fund's offering document and product key facts statement for further details, including product features and the full list of risk factors.