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Value Gold ETF

  • Value Gold ETF (the “Fund”) is a fund listed on the Stock Exchange of Hong Kong Limited (“SEHK”), which aims to provide investment results that closely correspond to the performance of the London Bullion Market Association Gold Price.
  • The Fund only invests in bullion and may experience greater volatility due to single economic, market or political occurrences.
  • The Fund has adopted a multi counter and units are traded in HKD, RMB and USD on SEHK. The nature of the multi-counter model may make investment in the units riskier than in single counter units or shares of an SEHK listed issuer. Investors without RMB or USD accounts may buy and sell HKD traded units only.
  • RMB is not a freely convertible currency and is subject to foreign exchange control policies, as well as repatriation restrictions imposed by the PRC government. Investors whose base currencies of investments are not in RMB should take into account the potential risk of loss arising from fluctuations in value between such currencies and the RMB.
  • The Fund does not insure its bullion and the Fund and unitholders could suffer a loss if the bullion held by the custodian is lost or damaged.
  • As the Fund is not actively managed, the Manager will not adopt a temporary defensive position against any market downturn. Investors may lose part or all of their investment.
  • Trading prices of units on the SEHK are subject to market forces and the units may trade at a substantial premium/discount to the net asset value of the Fund.
  • You should not make investment decision on the basis of this website alone. Please read the prospectus for details and risk factors.

Sensible Asset Management Hong Kong Limited does not make representation that information and website on this site are appropriate for use in all jurisdictions available on the web, or that transactions, securities, products, instruments or services offered on this site are available or indeed appropriate for sale or use in all jurisdictions, or by all investors or other potential clients. Those who access this site do so on their own initiative, and are therefore responsible for compliance with applicable local laws and regulations. By accessing each site, the entrant has agreed that he/she has reviewed the site in its entirety including any legal or regulatory rubric.

To the best of its knowledge and belief, SAMHK considers the information contained herein is accurate as at the date of publication. However, no warranty is given on the accuracy, adequacy or completeness of the information provided by third party. Neither SAMHK, nor its affiliates, directors and employees assumes any liabilities in respect of any errors or omissions provided by third party on this website. Under no circumstances should this information or any part of it be copied, reproduced or redistributed.

Investors should note investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors should read the prospectus for details and risk factors in particular those associated with investment in emerging markets and the arrangement in the event that the Funds are delisted. Investors should also note that the Funds are different from a typical retail investment funds, in particular, units in the Funds may only be created or redeemed directly by a participating dealer in large unit sizes.

Information in this website has been obtained from sources believed to be reliable but SAMHK does not guarantee the accuracy or completeness of the information provided by third parties.

This website has not been reviewed by the Securities and Futures Commission of Hong Kong. Issuer: Sensible Asset Management Hong Kong Limited.

The information provided herein is for informational purposes only and is not intended to provide professional advice and should not be relied upon in that regard. Persons accessing these pages are advised to obtain appropriate professional advice where necessary. Information posted on this site is current only as at the date of posting and may no longer be true or complete when viewed by you. All information contained herein may be changed or amended without prior notice, although SAMHK does not undertake to update this site regularly.

All copyright, patent, intellectual and other property rights in connection with the information contained herein are owned by SAMHK or its affiliates. No rights of any kind are licensed, assigned or shall otherwise pass to persons accessing this information.

Notice relating to the Personal Data (Privacy) Ordinance (the “Ordinance”)

When providing services to our clients and other parties, Sensible Asset Management Hong Kong Limited and its affiliates (collectively “SAMHK”, “the Company”) may from time to time require you to supply your personal data for the purposes of opening or continuing portfolio accounts and in the establishment or continuation of investment management and advisory services by the Company.

Failure to supply such data may result in SAMHK being unable to provide investment management and advisory services.

Personal data collected from you may be used by SAMHK within or outside Hong Kong, for the purposes of providing investment management and advisory services and direct marketing. The usage of the personal data may depend upon your relationship with SAMHK, which include but not limited to:

  • the application for the opening of a new account in SAMHK
  • the daily operation of the investment management and advisory services provided to clients
  • marketing of financial services or related products
  • meeting the requirements to make disclosures under the requirements of any law and/ or regulation and/ or codes binding on/ applicable to the Company.

Data held by the Company relating to you will be kept confidential but the Company may from time to time provide information to the following parties for the above purposes:

  • Any agent or third party service provider who provides administrative or securities clearing or other services to SAMHK in connection with the operation of its business
  • Any person to whom SAMHK is under an obligation to make disclosure under the requirements of any law and/ or regulation and/ or codes binding on/ applicable to the Company
  • Any other person under a duty of confidentiality to SAMHK including all subsidiaries and affiliates of SAMHK which has undertaken to keep such information confidential.

SAMHK intends to use your personal data in direct marketing and SAMHK requires your consent (which includes an indication of no objection) for that purpose. In this connection, your name, contact details, held by SAMHK from time to time may be used by SAMHK in direct marketing of financial services or products offered by SAMHK or co-branded partners.

Pursuant to the Ordinance, you have the right to (a) check whether SAMHK holds any personal data about you, and to access such data, at a reasonable fee, (b) request any inaccurate personal data to be corrected, (c) ascertain SAMHK policies and practices relating to personal data, including the type of personal data SAMHK holds and the main purpose for holding such data and (d) exercise your opt-out right if you do not wish SAMHK to use your personal data for direct marketing purposes. All such requests should be directed to:

The Compliance Officer

Sensible Asset Management Hong Kong Limited

43rd Floor, The Center,

99 Queen's Road Central, Hong Kong

Email: operations@valueETF.com.hk

Fund performance (from to )

Investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors should read the prospectus for details and risk factors in particular those associated with investment in emerging markets and the arrangement in the event that the Fund is delisted. The Fund’s prospectus is available and may be obtained from website. Investors should also note that the Fund is different from typical investment funds, in particular, units in the Fund may only be created or redeemed directly by a participating dealer in large unit sizes. Website has not been reviewed by the Securities and Futures Commission. Issuer: Sensible Asset Management Hong Kong Limited.
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  • What are ETFs?

    Exchange-traded funds (ETFs) are funds that track indices. When investors buy shares of an ETF, they are buying shares of a portfolio that seeks to replicate the performance of its underlying index. ETFs offer investors a basket of assets just like mutual funds but they trade like stocks on a stock exchange. The combined features of mutual funds of stocks make ETFs a diversified, transparent, low-cost and liquid investment tool that can serve various investment purposes:

    • active trading
    • buy and hold investing
    • core-satelite investing
    • diversification
    • hedging

  • What are the benefits of using ETFs?


    Cost efficiency

    ETFs enjoy lower cost than mutual funds because their nature of tracking an index incurs fewer administrative costs and management costs. Comparing an ETF and an actively managed fund that both invest in the same asset class and market, the cost of investing in the ETF is generally lower.

    Diversification

    ETFs are highly diversified investment vehicles that are made up of a broad portfolio of individual securities. They offer investors access to a wide range of asset classes or markets, including those that may not be easily available to individual investors because of high entry or regulatory requirement.

    Flexibility

    ETFs trade like stocks in stock market. Investors can buy or sell ETF shares at any time during a trading day and ETFs are priced continuously during trading hours. In addition, investors can purchase ETF shares on margin or short sell ETF shares.

    Low manager risk

    ETFs virtually eliminate the exposure to manager risks as they are passive funds that track market or rule-based index.

    Transparency

    ETFs are highly transparent as they often disclose underlying holdings of their portfolios on a daily basis. In most cases, such information is available on public, free websites.

  • How to buy and sell ETFs?

    ETF transactions take place in both primary and secondary markets. In most cases, institutional investors create and redeem ETF creation units at net asset value in primary market while individual or retail investors trade ETF shares at market price in secondary market.

    (i) Primary market

    ETF shares are created in primary market before secondary trading commences on stock exchanges. In general, only certain parties can take part in primary market activities and they include ETF sponsors (fund managers such as Value Partners), participating dealers (“PD”) (institutional investors that are authorized to create and redeem ETF creation units) and market makers (which provide liquidity).

    In the creation mechanism, a PD will apply to the ETF sponsor to create a creation unit, which is typically 50,000 ETF shares or more. After completing the direct purchase from the ETF sponsor, the PD will have an inventory of ETF shares that can be sold in the secondary market. The redemption process works in reverse.

    (ii) Secondary market

    After ETF shares are created by PDs in the primary market, they can then be sold to individual investors in the secondary market, i.e. the stock exchange. Individual investors can buy and sell ETF shares at market price during trading hours of a stock exchange.

  • How are ETFs priced?

    To understand the pricing mechanism of ETFs, it is essential to different between market price of an ETF share and net asset value (“NAV”) per share. Market price is the trading price of an ETF share in the secondary market (i.e. the stock exchange). This is a real-time price determined by trading activity on the stock exchange. For instance, the closing market price of an ETF is the price at which ETF shares were last traded during trading hours. Among the various factors influencing an ETF’s market price, the major ones include price movement of the underlying securities, exchange rate movements and investors’ demand for the ETF.

    Meanwhile, NAV per share is the weighted-average price of an ETF’s underlying securities, deducting fees and expenses of an ETF and then divided by the outstanding number of ETF shares. NAV per share is typically calculated and published after market closes on a daily basis.

    Market price of an ETF is usually similar to its net asset value (NAV) per share. If market price is higher than NAV per share, the ETF is trading at a premium. On the contrary, the ETF is trading at a discount. Premium or discount arises when an ETF’s underlying assets trade at different hours than the stock exchange (e.g. commodities). If the underlying assets trade infrequently, such as bonds, this could also lead to the gap between market price and NAV per value.

  • What is ETF liquidity?

    ETFs are generally perceived as more liquid than mutual funds. However, liquidity of ETFs varies because it is composed of different sources including on-screen liquidity, hidden liquidity and underlying liquidity.

    On-screen liquidity

    This is the most visible source of ETF liquidity as it refers to the trading activity of an ETF in the secondary market. In general, on-screen liquidity is mainly determined by the volume of shares traded. Most investors look at the 30-day or 60-day average daily trading volume to estimate such liquidity while some may evaluate the bid/ask spread. Yet, low trading volume doesn’t necessarily mean low liquidity as the secondary markets do not reflect all sources of potential liquidity.

    Hidden liquidity

    In addition to trading volume in the secondary market, the creation and redemption of ETF units by market makers in the primary market will also move ETF liquidity. Market makers, for example, could boost ETF liquidity by selling its ETF inventory shares on hand. As activities in the primary market are generally hidden from the public, this type of liquidity is called “hidden liquidity”.

    Underlying liquidity

    Another source of ETF liquidity comes from the underlying securities of ETFs. If the underlying securities held by an ETF are more liquid, the ETF is likely to be more liquid.

  • How are ETFs compared with mutual funds?

    ETF Hong Kong Retail Fund
    Pricing Continuous intra-day pricing on secondary market One quote per valuation day after market close
    Liquidity Depend on trading volume and underlying securities Depend on dealing frequency and terms
    Transparency Daily holding disclosure Full holding disclosure only mandatory in annual report
    Fee Relatively low Varies
    Short-selling Yes No
    Limit order Yes No

Investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors should read the prospectus for details and risk factors in particular those associated with investment in emerging markets and the arrangement in the event that the Fund is delisted. The Fund’s prospectus is available and may be obtained from website. Investors should also note that the Fund is different from typical investment funds, in particular, units in the Fund may only be created or redeemed directly by a participating dealer in large unit sizes. Website has not been reviewed by the Securities and Futures Commission. Issuer: Sensible Asset Management Hong Kong Limited.

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