In our last post, we talked about the Hong Kong markets and how undervalued it was in reference to its historical 7 year price-to-book chart. You can read it here if you have missed it:

How cheap is the Hong Kong market? [Hang Seng Index 7 Year Valuations]

Getting exposure to a specific country is best done through a low cost index fund or ETF.

Hong Kong’s hidden gem – the Tracker Fund of Hong Kong [SEHK:2800]

The history of the tracker fund is unique and worth telling.

In 1998, the Hong Kong Government intervened dramatically to restore confidence to the be-sieged financial markets and acquired a substantial portfolio of Hong Kong shares during the Asian Financial Crisis.

To minimise disruption to the market from a large disposal of its holding, the Government chose instead to IPO of the exchange-traded fund which Asia ex-Japan’s first physical ETF.

The fund’s goal is …