Skip to main content

ETFs are funds you can buy and sell via stock exchanges, similar to buying stocks. The investment goal is to track the underlying index. This can be a stock market, a group of regional or global stock markets, or an industry sector. The index can also be bonds or commodities.

A Hang Seng Index ETF, for example, its investment objective is to track Hong Kong's Hang Seng Index.

Some ETFs track the underlying index by buying the index's stocks. Others use derivatives to do so.

You should read the fund's offering document and product key facts statement. They will give details about the investment goals, index-tracking strategy, risks, fees and procedures.

To learn more, see the following sections.

 

Basics

What is ETF?
Key features
ETF versus unlisted funds
Offering documents
Information sources
Stock lending for ETFs
Multiple Counter Model for ETFs
List of ETF

Tracking strategies

Types of tracking
Tracking difference and tracking error

Benefits and risks

Key benefits
Major risks

Synthetic ETF

Identification by marker
Identification of annotation
Website disclosure
Funded swap
Unfunded swap
Performance-linked access products

Other types of ETF

Precious metal ETF
Futures-based ETF
Crude oil futures ETF