HSBC Adds H-Share Index ETF MPF Fund at 0.9% Fee

In November 2010 HSBC announced a new H-share index ETF fund for its MPF plan — tracking the Hang Seng China Enterprises Index with a 0.9% annual management fee.

What’s special?

ETF-based H-share tracking at a discount to active fees. The fund tracks the Hang Seng China Enterprises Index (H-shares) via ETF, letting members ride mainland state enterprises listed in Hong Kong through MPF. At 0.9% a year, it undercuts actively managed funds.

Who is it for?

Members bullish on state enterprises wanting diversification beyond Hong Kong stocks. H-share constituents are mainland SOEs concentrated in financials and energy — volatile stuff. It suits higher-risk members positive on the mainland economy, as part of a portfolio.

What are the risks?

Single-market concentration means big swings. The index’s sector and geographic concentration cuts both ways, plus renminbi and policy risks — members shouldn’t stake everything on it. Compare MPF funds’ fees and track records at MPF fund comparison.