ETF versus unlisted fund



  ETF/ Listed Class Unlisted fund/ unlisted class
Ways to buy and sell Buy and sell on the Stock Exchange of Hong Kong Limited (SEHK) based on its prevailing trading price. Buy and sell over-the-counter through subscription to and redemption from the fund based on its net asset value (NAV).
Trading channels Any intermediary (e.g. brokerage or bank) licensed by or registered with the SFC to carry on a business of dealing in securities. The fund company or the appointed distributors.
Trading hours Buying and selling orders are executed on a real-time basis during SEHK’s trading hours of each trading day. Each fund has its own defined dealing days, which may not be every business day.

Orders for subscription and redemption of units (or shares) are executed at the end of the dealing day.
Fees and charges Fees associated with trading of units on the SEHK, such as transaction levy, brokerage commission and trading fee. Fees associated with subscription and redemption of units, such as subscription fee and redemption fee.
Fund information1 Information on an ETF, such as the estimated NAV and last NAV, is available at the website of the Hong Kong Exchanges and Clearing Limited (HKEX), or the ETF's own website.

ETFs that use financial derivative instruments extensively to replicate indices are required to publish on their website information about the issuers/counterparties of the derivative instruments, the proportion of exposure in terms of NAV to each such issuer/counterparty and whether the ETF holds any collateral or separate assets to cover some of this exposure.
Information regarding unlisted funds is generally available from the fund manager and its appointed distributors. A fund manager usually sends written notices to unit-holders or shareholders for information about the fund (e.g. dividend notices).

1 Managers managing funds/ETFs with listed and unlisted classes should ensure that investors of both classes are treated fairly in terms of information disclosed.

20 March 2019