For those who have read my previous entries, such as getting started investing in Singapore and the guide to Singaporean ETFs know that I really like low cost index funds and investors now have three brand new choices available in Hong Kong.
As there is no withholding tax on dividends received from Hong Kong listed stocks and funds investing in Hong Kong ETFs is not a bad idea, the only issue being conversion cost to HKD as well as general exchange rate risk.
I have already bought 2,800 units of Vanguard’s FTSE Asia ex Japan Index ETF which passively tracks the biggest stocks from China, Hong Kong, India, Indonesia, South Korea, Malaysia, Pakistan, Philippines, Singapore, Taiwan and Thailand.
Vanguard now offers 4 ETFs in Hong Kong:
|Name of ETF||HKEX Ticker||Bloomberg Ticker||What are you buying?||Expense ratio||Distributions||Website|
|FTSE Japan Index ETF||3126||3126:HK||The FTSE Japan stock index||0.25%||Quarterly||link|
|FTSE Asia ex Japan High Dividend Yield Index ETF||3085||3085:HK||The FTSE Asia Pacific ex Japan, Australia,|
New Zealand High Dividend Yield
Index which covers companies with higher-than-average dividend yields
|FTSE Developed Europe Index ETF||3101||3101:HK||Index of large and mid cap stocks from developed European countries (UK, France, Germany, Switzerland and Spain being the 5 biggest)||0.25%||Quarterly||link|
|FTSE Asia ex Japan Index ETF||2805||2805:HK||Over 700 largest stocks from China, Hong Kong, India, Indonesia, South Korea, Malaysia, Pakistan, Philippines, Singapore, Taiwan and Thailand||0.38%||Quarterly||link|
These funds look extremely attractive. Issued by a strong market leading company, Vanguard and with very low fees. Investors looking for cheap and broad exposure to the markets of developed Europe can now buy the FTSE Developed Europe Index ETF while dividend lovers like myself can turn to the FTSE Asia ex Japan High Dividend Yield Index ETF.
All four Vanguard funds pay quarterly dividends, the highest dividends being expected from the FTSE Asia ex Japan High Dividend Yield Index ETF which is easily my favorite of the three new offerings and I will definitely consider adding it to my portfolio soon.
Now if only Vanguard could launch some of their ETFs on the Singapore Exchange (SGX)! Or offer some of their bond ETFs in Singapore or Hong Kong…