TraHK now biggest ETF in city with $178b assets

June Chen

The Tracker Fund of Hong Kong (2800) or TraHK has become the biggest exchange-traded fund in Hong Kong with its assets under management having surged by four times from 25 years ago to HK$178 billion as of early October.

Going public in 1999, the ETF celebrated its 25th anniversary yesterday. It once was the largest ETF in Asia except Japan with issue size reaching HK$33.3 billion.

Hang Seng Investment, a wholly owned subsidiary of Hang Seng Bank (0011), has been a manager of TraHK since 2022.

The ETF's assets under management or AUM have increased by 46 percent in two years after being managed by Hang Seng Investment, with the fund expense ratio decreased to 0.07 percent, according to Diana Cesar, executive director and chief executive of Hang Seng Bank.

Cesar said: "TraHK is ranked first among all Hong Kong stocks in terms of total turnover year to date as of 31 October 2024, a clear reflection of its significance in the market and more importantly, investor confidence."

She continued: "We are expanding Hong Kong's capital market into new regions. During the last two years, there has been a very strong connection between the values of TraHK and the Hang Seng Bank."

Last year, the first depositary receipt investing in the TraHK was listed on the Stock Exchange of Thailand, expanding its accessibility to overseas investors.

Last month, the SAB Invest Hang Seng Hong Kong ETF was launched on the Saudi Exchange - a feeder ETF that fully invests in TraHK, providing Middle Eastern investors with a unique entry point into Hong Kong's capital markets.

TraHK has grown into a symbol of Hong Kong's financial strength, reflecting the city's evolution as a leading international financial hub.