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I am keen on getting ISHARES HANG SENG TECH ETF (HKEX:9067 / HKEX:3067). HKEX:3067 is traded in HKD and HKEX:9067 is the USD counter. I have an Interactive Brokers account. Which counter would you recommend - USD or HKD? And are there any other distinct differences?
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Nicholas Beh
18 Apr 2021
Student Ambassador 2020/21 at Seedly
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Tan Choong Hwee
18 Apr 2021
Investor/Trader at Home
HKD is pegged to USD, they tend to move in tandem, so are 3067 and 9067.
I suppose your IBKR account base currency is USD, and it makes more sense to invest in 9067. If you invest in 3067, you either need to do manual FX conversion or end up having negative balance in HKD (which incurs financing charges).
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It is not a currency hedged ETF, so thus its currency is merely a matter of convenience. You will be exposed to the currency risk of its underlying assets and not the purchasing currency of the ETF. There should be no tangible difference between the two.
However, IBKR strangely does not allow users to trade USD-denominated HK ETFs, including 9067 and 9169. So does Tiger Brokers, which relies on IBKR for execution and clearance. So unless you switch brokers, your only option is to trade the HKD-denominated version.