3067 vs 3033: which ETF is a better investment

This is a comparison of 3067 vs 3033. Learn how to analyse which Hang Seng Tech ETF is a better investment.

How to choose between 3067 and 3033?

There are many Hang Seng Tech ETFs that are listed on the Hong Kong Stock Exchange.

3033 and 3067 are designed for investors to buy into Hang Seng Tech Index constituents at one sitting. Both seek to closely correspond to the performance of Hang Seng TECH Index. If you want to focus your investments on the technology sector or tech-enabled businesses, 3033 and 3067 are popular low cost ETFs for consideration.

Their underlying index is Hang Seng TECH Index, provided by Hang Seng Indexes Company Limited

Let’s find out which ETF is a better investment.

Why you should consider Hang Seng Tech ETF

  • Compare to individual stocks, an ETF offers good diversification and lower volatility
  • There is a lower investment threshold than investing in all Hang Seng Tech Index constituents at one sitting
  • Physical access to the 30 largest stocks (in the technology sector or with tech-enabled businesses), listed on the Hong Kong Stock Exchange
  • Direct exposure to companies across key sectors including information technology, consumer discretionary, and communication services
  • To capture Greater China Technology sector

Hang Seng Tech Index

The objective is to represent the 30 largest technology companies listed in Hong Kong which have high business exposure to the Technology Themes.

To be included in this index, companies have to:

  1. Have a high business exposure to technology themes
  2. Pass the index’s screening criteria

Meet at least one of the below criteria:

  • Technology-enabled business (e.g. via internet/mobile platform); or
  • R&D Expense to Revenue Ratio >=5%; or  
  • YoY Revenue Growth >=10%

Rebalancing Frequency is on a quarterly basis.

A newly listed security will be added to index if its full market capitalisation ranks within the top 10 of the existing constituents on its first trading day. The ad hoc addition will normally be implemented after the close of the 10th trading day of the new issue

3033 vs 3067: Historical Performance

30333067
3 Month Return-13.86%-13.45%
YTD return-24.16%-23.80%
1 Year return-15.69%-14.99%

3033

3033 is managed by CSOP Asset Management, a regulated Chinese asset manager that was founded in Hong Kong.

3033 vs 3067

3067

3067 is managed by BlackRock.

3033 vs 3067: Sector breakdown

30333067
Consumer discretionary35.78%34.65%
Information technology35.69%35.23%
Communication services23.41%24.79%
Healthcare3.88%3.98%
Financials1.23%1.23%
Cash and/or derivatives-0.13%

3033 vs 3067: Fund top holdings

3033.HK3067.HK
% of fund% of fund
Meituan9.20%8.72%
Tencent Holdings Ltd8.45%8.50%
JD.com Inc8.38%8.20%
Alibaba Group Holdings Ltd8.36%7.97%
Kuaishou Technology7.92%7.75%
Xiaomi Corp7.14%7.18%
Sunny Optical Technology Group7.06%7.22%
Semiconductor Manufacturing In5.30%5.40%
JD Health International Inc4.76%4.52%
Haier Smart Home Co Ltd3.53%3.71%

The performance of 3067 is slightly better than 3033.

Caveat

  • The ETFs are subjected to general market risks and may fall in value.
  • There is no guarantee of the repayment of principal.
  • Subjected 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 ETF may be riskier than other exchange traded funds tracking more established indices with longer operating history.
  • The ETF’s investments are concentrated in in companies with a technology theme from across the Greater China region listed in Hong Kong. The value of the ETF may be more volatile than that of a fund having a more diverse portfolio of investments or global / regional scope.   
  • Both ETFs are relatively new

3033 vs 3067: key findings and overlap

Both seek to track the investment results of an index composed of 30 Hong Kong listed companies, in the technology sector or with tech-enabled businesses.

Their main difference lies in the expense ratio which you’ll incur. However, their expense ratios are higher than most S&P 500 ETFs which usually cost less than 0.1%.

You are required to purchase a minimum of 100 units of 3067, vs a minimum of 200 units in 3033.

3033:HK3067:HK
DescriptionCSOP Hang Seng Tech Index ETFiShares Hang Seng TECH ETF
Total assets11,594,011,791,954 HKD8,617,493,612 HKD
Outstanding units1,886,400,200664,650,000
Distribution frequencyAt Manager's discretionSemi-annually
Current Management fee 0.99%0.25%
Expense ratio1.04%0.25%
Inception date28th August 202014th September 2020
Volume49,388,9759,935,513

How to buy

You can consider using Tiger Brokers or moomoo to invest in the HKSE.

Read the guides here: moomoo, Tiger Brokers

Conclusion

When you are investing in 2 ETFs that track the same index, the performances will be very similar. As such, you should look into their Fund manager, expense ratio, AUM and allocation of companies etc.

Overall, the 2 ETFs' performance may only differ slightly due to the tracking error of the fund.

3067 has a much lower expense ratio, which makes it more attractive. The huge difference in expense ratio will affect your net returns.

Related article
VTI vs VOO: which index fund is a better investment (updated 2020) 

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