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:
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 …