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Anonymous

01 Mar 2021

General Investing

Any better option than HK 2801 to tap China via ETF?

I plan to invest in China vs ETF, the best option now seems to be 2801 (low fee, no withholding tax). However I not sure if it will be stable for long term investment since Blackrock also left their HK office to Shanghai. Any better option out there? Thanks

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thefrugalstudent

01 Mar 2021

Founder at thefrugalstudent.com

Hi Anon,

Personally, I'm also looking to add 2801 into my portfolio due to its low expense ratio. If you're concerned about the long-term stability, perhaps you can consider 3169 (Vanguard total china index ETF) - I believe Vanguard still has an office in HK. However, do note that this ETF is still very new, thus its expense ratio is higher than 2801 (0.4%, double of 2801). But as time goes on and this ETF grows in size, I believe this expense ratio will steadily decrease as well, so this could make for a good long-term option.

Hope this helps & all the best!

Regards,

thefrugalstudent

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