Investors should not base investment decisions on this website/material alone. Please refer to the Prospectus for details including product features and the risk factors. Investment involves risks. There is no guarantee of the repayment of the principal. Investors should note:
- Global X Hang Seng ESG ETF (the “Fund”) invests in equity securities to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the HSI ESG Enhanced Index (the “Underlying Index”). The Fund is subject to general market risks and may fall in value and there is no guarantee of the repayment of principal.
- The Underlying Index is a new index. It has minimal operating history by which investors can evaluate its previous performance. There can be no assurance as to the performance of the Underlying Index. The Fund may be riskier than other exchange traded funds tracking more established indices with longer operating history.
- The Fund’s investments may be concentrated in companies with a greater ESG focus and thus its value may be more volatile than that of a fund with having a more diverse portfolio of investments. In addition, there is a lack of standardised taxonomy in relation to ESG investing strategies. The standard of disclosure adopted by funds in relation to the relevant ESG factors or principles may vary.
- The Underlying Index is subject to concentration risk as a result of tracking the performance of securities of companies listed on the SEHK which are incorporated in, or with the majority of revenue derived from, or with a principal place of business in, the Greater China region. The Net Asset Value of the Fund is therefore likely to be more volatile than a broad-based fund.
- The Fund may be subject to tracking error risk, which is the risk that its performance may not track that of the Underlying Index exactly. The Underlying Index is a new index and the Fund may be riskier than other exchange traded funds tracking more established indices with longer operating history.
- The trading price of the Fund unit (the “Unit”) on the Stock Exchange of Hong Kong is driven by market factors such as demand and supply of the Unit. Therefore, the Units may trade at a substantial premium or discount to the Fund’s net asset value.
- Dividends may be paid from capital or effectively out of capital of the Fund, which may amount to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment and result in an immediate reduction in the Net Asset Value per Unit of the Fund.
- The Fund’s synthetic replication strategy will involve investing up to 50% of its net asset value in financial derivative instruments (“FDIs”), mainly funded total return swap transaction(s) through one or more counterparty(ies). Risks associated with FDIs include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. FDIs are susceptible to price fluctuations and higher volatility, and may have large bid and offer spreads and no active secondary markets. The leverage element/component of an FDI can result in a loss significantly greater than the amount invested in the FDI by the Sub-Fund.
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