ETFs have become a staple in modern investment portfolios, offering diversification and targeted exposure in an easily tradable format. In this article, we'll dissect two Hong Kong-focused ETFs: EWH (iShares MSCI Hong Kong ETF) and ZHOK (SPDR Solactive Hong Kong ETF). We'll delve into their tickers, full names, issuers, sectors, top holdings, capitalization, strategies, tracking methods, and exposure.
EWH and ZHOK are both designed to provide investors with exposure to the Hong Kong market, albeit through different strategies. EWH tracks the MSCI Hong Kong Index, capturing large- and mid-cap segments of the Hong Kong market. ZHOK, in contrast, aims to replicate the performance of the Solactive GBS Hong Kong Large & Mid Cap USD Index, focusing on a different set of companies in the region.
EWH is an iShares product, managed by BlackRock, known for its diversified range of ETFs. ZHOK is a SPDR product, part of State Street Global Advisors, another well-regarded name in the ETF world. EWH's strategy revolves around broad market exposure, while ZHOK aims for a more specialized selection of companies based on its Solactive index. The issuer's reputation and strategy can significantly influence an investor's choice between these two ETFs.
EWH overlap EWH VS ZHOK: A Comprehensive Comparison of ETFs
EWH provides exposure across a variety of sectors, including financials, real estate, and utilities. Its top holdings include AIA Group and Hong Kong Exchanges and Clearing. ZHOK is more concentrated, primarily focusing on the financial and real estate sectors, with top holdings like Sun Hung Kai Properties and BOC Hong Kong Holdings. Knowing the sectors and top holdings can help investors align their portfolios according to their risk tolerance and investment goals.
EWH boasts a larger AUM compared to ZHOK, indicating its more widespread acceptance and possibly better liquidity. ZHOK, being a more specialized fund, has a lower AUM but may offer a unique investment perspective. The capitalization and AUM should be considered for their implications on liquidity and market risk.
EWH and ZHOK offer distinct avenues for investing in Hong Kong's diverse market. For those keen on understanding the intricacies of these ETFs, ETF Insider is an invaluable tool. Through its user-friendly app interface, it offers a deep dive into holdings, correlations, overlaps, and many more insights.
By examining EWH and ZHOK on multiple facets, this article aims to equip investors with the essential knowledge to make educated choices. Whether you're an experienced investor or a novice looking to venture into international markets, this in-depth comparison should serve as a cornerstone for your investment decisions in Hong Kong-centric ETFs.
Disclaimer: This article does not provide any investment advisory services.
EWH ETF issuer
EWH ETF official page
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