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General Risks Disclosure for Exchange Traded Funds (“ETFs”),
Synthetic ETFs, and Leveraged Products and/or Inverse Products Structured as ETFs
交易所買賣基金(「 ETF」)、合成交易所買賣基金(「合成ETF」 )以及槓桿及/或反向式交易所買賣基金産品(「槓桿及反向産品」)的風險披露 


The principal objective of an ETF is to track the performance of an underlying index, or a group of assets such as commodities instead of an index, as the case may be.

The performance of units in an ETF is unpredictable. It depends on financial, political, economic and other events as well as the ETF’s earnings, market position, risk situation, shareholder structure and distribution policy.

In case of the transaction that is linked to the performance of an ETF, you should also note that the value of an interest in the ETF will generally decline in line with the decline of any securities which comprise the benchmark portfolio or the value of any benchmark index linked to the relevant ETF. Investment in the transaction linked to an ETF involves risks similar to those of investing in the equity securities traded on an exchange that comprise the benchmark portfolio or index to which the ETF is linked, such as market fluctuations caused by, amongst other things, economic and political developments, changes in interest rates and currency rates and market liquidity. 

Whilst the net asset value of units in an ETF will reflect the market value of the ETF’s portfolio, trading prices of the units in an ETF on the stock exchange may be lower or higher than the net asset value per unit.  Although the investment strategy of an ETF is typically designed to replicate the movements in the benchmark index or the underlying asset pool to which the ETF is linked, there may be divergence between the performance of the ETF and the performance of the benchmark index or portfolio that the ETF is designed to track due to certain tracking errors as a result of a number of factors (or combination thereof). These contributing factors may include, but are not limited to, any failure of the tracking strategy, fees and expenses that are deducted from the ETF’s returns, currency differences in the constituents that comprise the index or the underlying asset pool which the ETF is designed to track. In particular, where the benchmark index or market that the ETF tracks is subject to restricted market access, for instance, an emerging market index, the efficiency in the unit creation or redemption of units/interests in the ETF to keep the price of the ETF in line with its net asset value may be impeded or disrupted due to the lack of liquidity in its constituents, causing the ETF to trade at a higher premium or discount to its net asset value. There is no guarantee of the repayment of principal or that investment objective of the ETF will be met. 

Although the ETF is traded on stock exchange, investors should be aware that there may be no liquid trading market for the units of the ETF. There can be no assurance that active trading markets for units of the ETF will continue to develop, nor is there a certain basis for predicting the actual price levels at, or sizes in, which units may trade.

Following are some risks associated with ETFs with special features. The list is not exhaustive. Investors should always refer to the relevant ETF / product prospectus(es) for details, in particular, the risk factors.


Due to market accessibility, the efficiency in unit creation or redemption to keep the price of the synthetic ETF in line with its net asset value (“NAV”) may be disrupted, causing the synthetic ETF to trade at a higher premium or discount to its NAV. Such risks may have a negative impact on the potential return of the product. If an ETF adopts a synthetic replication investment strategy to achieve its investment objectives by investing in financial derivative instruments, you should note that (i) by investing in financial derivative instruments, the ETF is exposed to the credit, potential contagion and concentration risks of the counterparties who issued the financial derivative instruments, and the market value of any collateral held by the ETF may have fallen substantially when the ETF seeks to realise such collateral; and (ii) the ETF may be exposed to higher liquidity risk if such financial derivative instruments do not have an active secondary market.

Synthetic ETF products may include different kinds of strategies, including but not limited to index tracking, replication strategy, leverage strategy, or any combination of derivatives with collateral requirements. Investor should refer to the respective ETF prospectus and be familiar with particular features and risk. 

The major risks associated with synthetic ETFs are highlighted below:

(1) Market risk – the clients are exposed to the political, economic, currency and other risks related to the synthetic ETF’s underlying index.

(2) Counterparty risk – where a synthetic ETF invests in derivatives to replicate the index performance, the clients are exposed to the credit risk of the counterparties who issued the derivatives, in addition to the risks relating to the index. Further, potential contagion and concentration risks of the derivatives issuers should be taken into account (e.g. since derivative issuers are predominantly international financial institutions, the failure of one derivative counterparty of a synthetic ETF may have a “knock-on” effect on other derivative counterparties of the synthetic ETF). Some synthetic ETFs have collateral to reduce the counterparty risk, but there may be a risk that the market value of the collateral has fallen substantially when the synthetic ETF seeks to realise the collateral.

(3) Liquidity risk – a higher liquidity risk is involved if a synthetic ETF involves derivatives which do not have an active secondary market. Wider bid-offer spreads in the price of the derivatives may result in losses.

(4) Tracking error – there may be disparity between the performance of the synthetic ETF and the performance of the underlying index due to, for instance, failure of the tracking strategy, currency differences, fees and expenses.

(5) Trading at a discount or premium – where the index/market that the synthetic ETF tracks is subject to restricted access, the efficiency in unit creation or redemption to keep the price of the synthetic ETF in line with its NAV may be disrupted, causing the synthetic ETF to trade at a higher premium or discount to its NAV. Investors who buy a synthetic ETF at a premium may not be able to recover the premium in the event of termination.


Leveraged products structured as ETFs (“Leveraged Products”) typically aim to deliver a return equivalent to a multiple of the underlying index return that they track. On the other hand, inverse products structured as ETFs (“Inverse Products”) typically aim to deliver the opposite of the return of the underlying index that they track. To produce the specified leveraged or inverse return, these ETFs have to rebalance their portfolios, typically on a daily basis.  L&I Products are different from the buy-to-hold characteristics of conventional ETFs.  Investors should normally not hold L&I Products for longer than the rebalancing interval, which is typically one day.  L&I Products are designed as a trading tool for short-term market timing or hedging purposes, and are not intended for long term investment.  L&I Products are only suitable for sophisticated trading-oriented investors who constantly monitor the performance of their holdings on a daily basis; and the performance of L&I Products, when held overnight, may deviate from the underlying indices.

Leveraged Products aim to obtain leveraged exposure to an index.  The ETFs may be leveraged by borrowing, by entering into futures contracts and through the use of other financial derivatives. Whilst leveraging provides the ETFs with significantly more market exposure and hence an opportunity for greater total returns than it would have where no leveraging is being used, it also exposes the ETFs to a greater risk of loss arising from adverse movements in the index and a fall in the value of the index will trigger a greater and accelerated fall in the net asset value of the ETFs.

Due to the use of leverage and effects of compounding, the performance of the  ETFs will be magnified (either in an upward or downward market) as compared with that of the index. The performance of the ETFs for periods longer than a single day, especially in periods of volatility, may differ significantly from the performance of the index over the same period of time.

Investors of any Inverse Product shall lose money when the index rises, which is a result that is the opposite from traditional index tracking ETFs. There is no guarantee that the Inverse Product will achieve a high degree of inverse correlation to the index and therefore achieve its inverse leveraged investment objective. 


Inverse leveraged products structured as ETFs (“Inverse Leveraged Products”) seek investment results of a certain multiple of the inverse (or opposite) of the performance of an index. The Inverse Leveraged Products are different and much riskier than most ETFs that do not use leverage, and are suitable for investors who have sufficient knowledge and understand the risks associated with shorting and the use of leverage and intend to actively monitor and manage their portfolios.


Prices of financial derivatives may be affected by many factors. An illiquid market may adversely affect the price of financial derivatives and therefore the value of the ETFs. In particular, over-the-counter financial derivatives are normally less liquid than exchange traded financial derivatives. When an exchange traded financial derivative is de-listed, its liquidity and price may be adversely affected.

ETFs investing in futures contracts are particularly volatile. The prices of futures contracts may be affected by many factors apart from the values of the underlying assets. The low initial margin deposits normally required to establish a position in futures contracts permit a high degree of leverage. As a result, a relatively small movement in the price of a futures contract may result in a profit or loss which is greater than the amount of margin deposits initially placed with the intermediaries. ETFs will be subject to the counterparty risk with regard to financial derivatives which it holds and in the event of the insolvency of any counterparty or of any broker through which the fund manager trades for the account of the ETFs, the ETFs may only rank as an unsecured creditor in respect of the sums due to the ETFs under the relevant margin account or otherwise and any losses arising there from will be borne by the ETFs.

As a result of the above, the price of units in the ETFs may be volatile. Investors should note that whilst the ETFs will use financial derivatives to achieve its investment objective, investors’ liabilities are limited to the amount they invest in the ETFs.

交易所買賣基金(「 ETF」)、合成交易所買賣基金(「合成ETF」 )以及槓桿及/或反向式交易所買賣基金産品(「槓桿及反向産品」)的風險披露 





ETF各單位的資産淨值將反映ETF投資組合的市值,但證券交易所的ETF所有單位的交易價格可能低於或高於每個單位的資産淨值。儘管ETF的投資策略往往旨在複製與ETF相連的基準指數或者相關資産組合的走勢,但基於多項因素(或結合有關因素)所引起的若干追蹤誤差,ETF可能與其追蹤的基準指數或投資組合表現分歧。上述因素可能包括但不限於:追蹤策略失敗、從該ETF回報扣除的費用和開支,以及該ETF與其追蹤的基準指數或投資組合的成份證券具有貨幣差異。尤其,當該ETF追蹤的基準指數或市場的進出受到限制,例如新興市場指數,由於成份證券欠缺流動性,為維持ETF價格與其資産淨值一致而進行的單位增設或單位/權益贖回效率可能會受阻,導致該ETF 以較資産淨值存在溢價或折讓的價格進行交易。本金償還或ETF之投資目標達成與否概無保證。




由於市場准入問題,為維持合成ETF價格與其資産淨值(簡稱NAV)一致而進行的單位增設或贖回效率可能受阻,導致合成ETF以較資産淨值存在溢價或折讓的價格進行交易。此等風險可能為該産品的潜在回報帶來負面影響。如果ETF採取合成複制策略,通過投資金融衍生工具以達成投資目標,閣下須注意:(i) 該ETF投資於金融衍生工具,故面對發行有關金融衍生工具的交易對手的信貸、潜在擴散和集中風險,而當該ETF嘗試套現其持有的任何抵押品時,抵押品的市值可能已經大幅下跌;以及(ii)如果該等金融衍生工具的二級市場並不活躍,該ETF的流動性風險可能更高。



(1)市場風險 – 投資者面對合成ETF之相關指數的政治、經濟、貨幣和其他相關風險。

(2)交易對手風險 – 如果合成ETF投資於衍生工具以複製指數表現,投資者將面對發行有關衍生工具的交易對手的信貸風險,以及與指數相關的風險。另外,應考慮衍生工具發行人潜在擴散和集中風險(例如衍生工具發行人以國際金融機構為主,因此,如果合成ETF的一家衍生工具交易對手倒閉,可能為該合成ETF的其他衍生工具交易對手帶來「連鎖」效應)。部分合成ETF持有抵押品以降低交易對手風險,但當該ETF嘗試套現有關抵押品時,亦可能有抵押品市值已大幅下跌的風險。

(3) 流動性風險 – 如果合成ETF投資於二級市場並不活躍的衍生工具,其附帶的流動性風險將較高。衍生工具買賣差價擴濶可能導致損失。

(4) 追蹤誤差 –  合成ETF的表現與相關指數的表現可能並不一致,原因包括追蹤策略失效、貨幣差異、費用和開支。

(5) 以折讓或溢價進行交易 – 如果合成ETF追蹤的指數/市場受到進出限制,為維持合成ETF價格與其資産淨值一致而進行的單位增設或贖回效率或會受阻,導致合成ETF以較資産淨值存在溢價或折讓的價格進行交易。如果投資者以溢價投資於一隻合成ETF,投資者在ETF終止營運時可能無法取回相關溢價。








交易所买卖基金(“ETF”)、合成交易所买卖基金(“合成ETF” )以及杠杆及/或反向式交易所买卖基金产品(“杠杆及反向产品”)的风险披露 





ETF各单位的资产净值将反映ETF投资组合的市值,但证券交易所的ETF所有单位的交易价格可能低于或高于每个单位的资产净值。尽管ETF的投资策略往往旨在复制与ETF相连的基准指数或者相关资产组合的走势,但基于多项因素(或结合有关因素)所引起的若干追踪误差,ETF可能与其追踪的基准指数或投资组合表现分歧。上述因素可能包括但不限于:追踪策略失败、从该ETF回报扣除的费用和开支,以及该ETF与其追踪的基准指数或投资组合的成份证券具有货币差异。尤其,当该ETF追踪的基准指数或市场的进出受到限制,例如新兴市场指数,由于成份证券欠缺流动性,为维持ETF价格与其资产净值一致而进行的单位增设或单位/权益赎回效率可能会受阻,导致该ETF 以较资产净值存在溢价或折让的价格进行交易。本金偿还或ETF之投资目标达成与否概无保证。




由于市场准入问题,为维持合成ETF价格与其资产净值(简称NAV)一致而进行的单位增设或赎回效率可能受阻,导致合成ETF以较资产净值存在溢价或折让的价格进行交易。此等风险可能为该产品的潜在回报带来负面影响。如果ETF采取合成复制策略,通过投资金融衍生工具以达成投资目标,阁下须注意:(i) 该ETF投资于金融衍生工具,故面对发行有关金融衍生工具的交易对手的信贷、潜在扩散和集中风险,而当该ETF尝试套现其持有的任何抵押品时,抵押品的市值可能已经大幅下跌;以及(ii)如果该等金融衍生工具的二级市场并不活跃,该ETF的流动性风险可能更高。



(1)市场风险 – 投资者面对合成ETF之相关指数的政治、经济、货币和其他相关风险。

(2)交易对手风险 – 如果合成ETF投资于衍生工具以复制指数表现,投资者将面对发行有关衍生工具的交易对手的信贷风险,以及与指数相关的风险。另外,应考虑衍生工具发行人潜在扩散和集中风险(例如衍生工具发行人以国际金融机构为主,因此,如果合成ETF的一家衍生工具交易对手倒闭,可能为该合成ETF的其他衍生工具交易对手带来“连锁”效应)。部分合成ETF持有抵押品以降低交易对手风险,但当该ETF尝试套现有关抵押品时,亦可能有抵押品市值已大幅下跌的风险。

(3) 流动性风险 – 如果合成ETF投资于二级市场并不活跃的衍生工具,其附带的流动性风险将较高。衍生工具买卖差价扩阔可能导致损失。

(4) 追踪误差 –  合成ETF的表现与相关指数的表现可能并不一致,原因包括追踪策略失效、货币差异、费用和开支。

(5) 以折让或溢价进行交易 – 如果合成ETF追踪的指数/市场受到进出限制,为维持合成ETF价格与其资产净值一致而进行的单位增设或赎回效率或会受阻,导致合成ETF以较资产净值存在溢价或折让的价格进行交易。如果投资者以溢价投资于一只合成ETF,投资者在ETF终止运营时可能无法取回相关溢价。








Please note that Chinese versions are for reference only and the English version shall prevail.