General Risks Disclosure for Exchange Traded Funds (“ETFs”),
Synthetic ETFs, and Leveraged Products and/or Inverse Products Structured as ETFs
交易所買賣基金（「 ETF」）、合成交易所買賣基金（「合成ETF」 ）以及槓桿及/或反向式交易所買賣基金産品（「槓桿及反向産品」）的風險披露 

RISK ASSOCIATED WITH ETFS

The principal objective of an ETF is to track the performance of an underlying index, or a group of assets such as commodities instead of an index, as the case may be.

The performance of units in an ETF is unpredictable. It depends on financial, political, economic and other events as well as the ETF’s earnings, market position, risk situation, shareholder structure and distribution policy.

In case of the transaction that is linked to the performance of an ETF, you should also note that the value of an interest in the ETF will generally decline in line with the decline of any securities which comprise the benchmark portfolio or the value of any benchmark index linked to the relevant ETF. Investment in the transaction linked to an ETF involves risks similar to those of investing in the equity securities traded on an exchange that comprise the benchmark portfolio or index to which the ETF is linked, such as market fluctuations caused by, amongst other things, economic and political developments, changes in interest rates and currency rates and market liquidity. 

Whilst the net asset value of units in an ETF will reflect the market value of the ETF’s portfolio, trading prices of the units in an ETF on the stock exchange may be lower or higher than the net asset value per unit.  Although the investment strategy of an ETF is typically designed to replicate the movements in the benchmark index or the underlying asset pool to which the ETF is linked, there may be divergence between the performance of the ETF and the performance of the benchmark index or portfolio that the ETF is designed to track due to certain tracking errors as a result of a number of factors (or combination thereof). These contributing factors may include, but are not limited to, any failure of the tracking strategy, fees and expenses that are deducted from the ETF’s returns, currency differences in the constituents that comprise the index or the underlying asset pool which the ETF is designed to track. In particular, where the benchmark index or market that the ETF tracks is subject to restricted market access, for instance, an emerging market index, the efficiency in the unit creation or redemption of units/interests in the ETF to keep the price of the ETF in line with its net asset value may be impeded or disrupted due to the lack of liquidity in its constituents, causing the ETF to trade at a higher premium or discount to its net asset value. There is no guarantee of the repayment of principal or that investment objective of the ETF will be met. 

Although the ETF is traded on stock exchange, investors should be aware that there may be no liquid trading market for the units of the ETF. There can be no assurance that active trading markets for units of the ETF will continue to develop, nor is there a certain basis for predicting the actual price levels at, or sizes in, which units may trade.

Following are some risks associated with ETFs with special features. The list is not exhaustive. Investors should always refer to the relevant ETF / product prospectus(es) for details, in particular, the risk factors.

RISK ASSOCIATED WITH SYNTHETIC ETFS

Due to market accessibility, the efficiency in unit creation or redemption to keep the price of the synthetic ETF in line with its net asset value (“NAV”) may be disrupted, causing the synthetic ETF to trade at a higher premium or discount to its NAV. Such risks may have a negative impact on the potential return of the product. If an ETF adopts a synthetic replication investment strategy to achieve its investment objectives by investing in financial derivative instruments, you should note that (i) by investing in financial derivative instruments, the ETF is exposed to the credit, potential contagion and concentration risks of the counterparties who issued the financial derivative instruments, and the market value of any collateral held by the ETF may have fallen substantially when the ETF seeks to realise such collateral; and (ii) the ETF may be exposed to higher liquidity risk if such financial derivative instruments do not have an active secondary market.

Synthetic ETF products may include different kinds of strategies, including but not limited to index tracking, replication strategy, leverage strategy, or any combination of derivatives with collateral requirements. Investor should refer to the respective ETF prospectus and be familiar with particular features and risk. 

The major risks associated with synthetic ETFs are highlighted below:

(1) Market risk – the clients are exposed to the political, economic, currency and other risks related to the synthetic ETF’s underlying index.

(2) Counterparty risk – where a synthetic ETF invests in derivatives to replicate the index performance, the clients are exposed to the credit risk of the counterparties who issued the derivatives, in addition to the risks relating to the index. Further, potential contagion and concentration risks of the derivatives issuers should be taken into account (e.g. since derivative issuers are predominantly international financial institutions, the failure of one derivative counterparty of a synthetic ETF may have a “knock-on” effect on other derivative counterparties of the synthetic ETF). Some synthetic ETFs have collateral to reduce the counterparty risk, but there may be a risk that the market value of the collateral has fallen substantially when the synthetic ETF seeks to realise the collateral.

(3) Liquidity risk – a higher liquidity risk is involved if a synthetic ETF involves derivatives which do not have an active secondary market. Wider bid-offer spreads in the price of the derivatives may result in losses.

(4) Tracking error – there may be disparity between the performance of the synthetic ETF and the performance of the underlying index due to, for instance, failure of the tracking strategy, currency differences, fees and expenses.

(5) Trading at a discount or premium – where the index/market that the synthetic ETF tracks is subject to restricted access, the efficiency in unit creation or redemption to keep the price of the synthetic ETF in line with its NAV may be disrupted, causing the synthetic ETF to trade at a higher premium or discount to its NAV. Investors who buy a synthetic ETF at a premium may not be able to recover the premium in the event of termination.

RISK ASSOCIATED WITH LEVERAGED PRODUCTS AND/OR INVERSE PRODUCTS STRUCTURED AS ETFS (“L&I PRODUCTS”)

Leveraged products structured as ETFs (“Leveraged Products”) typically aim to deliver a return equivalent to a multiple of the underlying index return that they track. On the other hand, inverse products structured as ETFs (“Inverse Products”) typically aim to deliver the opposite of the return of the underlying index that they track. To produce the specified leveraged or inverse return, these ETFs have to rebalance their portfolios, typically on a daily basis.  L&I Products are different from the buy-to-hold characteristics of conventional ETFs.  Investors should normally not hold L&I Products for longer than the rebalancing interval, which is typically one day.  L&I Products are designed as a trading tool for short-term market timing or hedging purposes, and are not intended for long term investment.  L&I Products are only suitable for sophisticated trading-oriented investors who constantly monitor the performance of their holdings on a daily basis; and the performance of L&I Products, when held overnight, may deviate from the underlying indices.

Leveraged Products aim to obtain leveraged exposure to an index.  The ETFs may be leveraged by borrowing, by entering into futures contracts and through the use of other financial derivatives. Whilst leveraging provides the ETFs with significantly more market exposure and hence an opportunity for greater total returns than it would have where no leveraging is being used, it also exposes the ETFs to a greater risk of loss arising from adverse movements in the index and a fall in the value of the index will trigger a greater and accelerated fall in the net asset value of the ETFs.

Due to the use of leverage and effects of compounding, the performance of the  ETFs will be magnified (either in an upward or downward market) as compared with that of the index. The performance of the ETFs for periods longer than a single day, especially in periods of volatility, may differ significantly from the performance of the index over the same period of time.

Investors of any Inverse Product shall lose money when the index rises, which is a result that is the opposite from traditional index tracking ETFs. There is no guarantee that the Inverse Product will achieve a high degree of inverse correlation to the index and therefore achieve its inverse leveraged investment objective. 

Inverse leveraged products structured as ETFs (“Inverse Leveraged Products”) seek investment results of a certain multiple of the inverse (or opposite) of the performance of an index. The Inverse Leveraged Products are different and much riskier than most ETFs that do not use leverage, and are suitable for investors who have sufficient knowledge and understand the risks associated with shorting and the use of leverage and intend to actively monitor and manage their portfolios.

RISKS ASSOCIATED WITH THE USE OF FINANCIAL DERIVATIVES

Prices of financial derivatives may be affected by many factors. An illiquid market may adversely affect the price of financial derivatives and therefore the value of the ETFs. In particular, over-the-counter financial derivatives are normally less liquid than exchange traded financial derivatives. When an exchange traded financial derivative is de-listed, its liquidity and price may be adversely affected.

ETFs investing in futures contracts are particularly volatile. The prices of futures contracts may be affected by many factors apart from the values of the underlying assets. The low initial margin deposits normally required to establish a position in futures contracts permit a high degree of leverage. As a result, a relatively small movement in the price of a futures contract may result in a profit or loss which is greater than the amount of margin deposits initially placed with the intermediaries. ETFs will be subject to the counterparty risk with regard to financial derivatives which it holds and in the event of the insolvency of any counterparty or of any broker through which the fund manager trades for the account of the ETFs, the ETFs may only rank as an unsecured creditor in respect of the sums due to the ETFs under the relevant margin account or otherwise and any losses arising there from will be borne by the ETFs.

As a result of the above, the price of units in the ETFs may be volatile. Investors should note that whilst the ETFs will use financial derivatives to achieve its investment objective, investors’ liabilities are limited to the amount they invest in the ETFs.

交易所買賣基金（「 ETF」）、合成交易所買賣基金（「合成ETF」 ）以及槓桿及/或反向式交易所買賣基金産品（「槓桿及反向産品」）的風險披露 

與ETF相關風險

ETF的主要目的是追蹤相關指數或一組資産（比如商品而非指數）的表現（視情況而定）。

ETF各單位表現無法預測，並取决於金融、政治、經濟和其他事件以及ETF的盈利、市場地位、風險狀況、股東架構和派息政策。

當交易與ETF的表現相連時，閣下須注意，基準投資組合的任何成份證券或相關ETF的任何相關基準指數的價值下跌，該等ETF的權益價值一般將跟隨下跌。投資於ETF相關交易的風險，與投資於交易所上市並組成該ETF的基準投資組合或相關指數的股本證券相近，例如因經濟和政治發展、利率和匯率變動、市場流動性以及其他因素所引起的市場波動。

ETF各單位的資産淨值將反映ETF投資組合的市值，但證券交易所的ETF所有單位的交易價格可能低於或高於每個單位的資産淨值。儘管ETF的投資策略往往旨在複製與ETF相連的基準指數或者相關資産組合的走勢，但基於多項因素（或結合有關因素）所引起的若干追蹤誤差，ETF可能與其追蹤的基準指數或投資組合表現分歧。上述因素可能包括但不限於：追蹤策略失敗、從該ETF回報扣除的費用和開支，以及該ETF與其追蹤的基準指數或投資組合的成份證券具有貨幣差異。尤其，當該ETF追蹤的基準指數或市場的進出受到限制，例如新興市場指數，由於成份證券欠缺流動性，為維持ETF價格與其資産淨值一致而進行的單位增設或單位/權益贖回效率可能會受阻，導致該ETF 以較資産淨值存在溢價或折讓的價格進行交易。本金償還或ETF之投資目標達成與否概無保證。

儘管ETF於證券交易所交易，但投資者須注意，ETF各單位或無流動的交易市場。ETF各單位是否有不斷發展的活躍交易市場概無保證，亦無特定的基礎來預測各單位可能以何種實際價格水平或規模來進行交易。

某些ETF包含一些特徵，相關風險如下。該清單並非詳盡清單。投資者須參閱相關ETF/産品說明書以知詳情，尤其是風險因素。

與合成ETF相關風險

由於市場准入問題，為維持合成ETF價格與其資産淨值（簡稱NAV）一致而進行的單位增設或贖回效率可能受阻，導致合成ETF以較資産淨值存在溢價或折讓的價格進行交易。此等風險可能為該産品的潜在回報帶來負面影響。如果ETF採取合成複制策略，通過投資金融衍生工具以達成投資目標，閣下須注意：(i) 該ETF投資於金融衍生工具，故面對發行有關金融衍生工具的交易對手的信貸、潜在擴散和集中風險，而當該ETF嘗試套現其持有的任何抵押品時，抵押品的市值可能已經大幅下跌；以及(ii)如果該等金融衍生工具的二級市場並不活躍，該ETF的流動性風險可能更高。

合成交易所買賣基金産品可能採取不同策略，包括但不限於指數追蹤、複製策略、槓桿策略，或設有抵押品要求的任何衍生工具組合。投資者應閱讀有關ETF的發行章程以了解其特色和風險。

以下是合成交易所買賣基金的主要相關風險：

(1)市場風險 – 投資者面對合成ETF之相關指數的政治、經濟、貨幣和其他相關風險。

(2)交易對手風險 – 如果合成ETF投資於衍生工具以複製指數表現，投資者將面對發行有關衍生工具的交易對手的信貸風險，以及與指數相關的風險。另外，應考慮衍生工具發行人潜在擴散和集中風險（例如衍生工具發行人以國際金融機構為主，因此，如果合成ETF的一家衍生工具交易對手倒閉，可能為該合成ETF的其他衍生工具交易對手帶來「連鎖」效應）。部分合成ETF持有抵押品以降低交易對手風險，但當該ETF嘗試套現有關抵押品時，亦可能有抵押品市值已大幅下跌的風險。

(3) 流動性風險 – 如果合成ETF投資於二級市場並不活躍的衍生工具，其附帶的流動性風險將較高。衍生工具買賣差價擴濶可能導致損失。

(4) 追蹤誤差 –  合成ETF的表現與相關指數的表現可能並不一致，原因包括追蹤策略失效、貨幣差異、費用和開支。

(5) 以折讓或溢價進行交易 – 如果合成ETF追蹤的指數／市場受到進出限制，為維持合成ETF價格與其資産淨值一致而進行的單位增設或贖回效率或會受阻，導致合成ETF以較資産淨值存在溢價或折讓的價格進行交易。如果投資者以溢價投資於一隻合成ETF，投資者在ETF終止營運時可能無法取回相關溢價。

與槓桿及/或反向式交易所買賣基金産品（簡稱「槓桿及反向産品」）相關風險

槓桿式交易所買賣基金産品（簡稱「槓桿産品」）通常旨在締造其追蹤的相關指數回報的數倍。另一方面，反向型交易所買賣基金（簡稱「反向産品」）通常旨在締造與其追蹤的相關指數相反的回報。為締造特定的槓桿或反向回報，這些ETF通常需每日重新平衡投資組合。槓桿及反向産品有別於買入並持有的傳統型ETF。投資者一般不應持有槓桿及反向産品的再平衡時距，一般來說為一天。槓桿及反向産品是用於掌握短期市場時機或對沖目的的交易工具，並不擬作長期投資。槓桿及反向産品僅適合以交易為主導並每日監察其持倉表現的資深投資者；而當槓桿及反向産品持倉隔夜時，其表現可能偏離相關指數表現。

槓桿産品旨在對指數建立槓桿式持倉。ETF可通過借貸、訂立期貨合約以及運用其他金融衍生工具使用槓桿。雖然槓桿作用可令ETF市場持倉顯著提升，因而有機會締造比不使用槓桿情況下更大的總回報，但是這同時亦令ETF在指數走勢不利時面臨更大虧損風險，並且指數價值的下跌將觸發ETF資産淨值加速大幅下挫。由於運用槓桿以及複式計算的影響，ETF的表現（在上行或下行市況）相比指數表現將會被倍大。ETF超過一天時期（尤其是在市況波動時期）的表現可能與同時段內指數表現顯著有別。

投資於任何反向産品的投資者，在指數上升時將會虧損，這跟傳統追蹤指數ETF的效應相反。概不保證反向産品將與指數呈高度負相聯性，因此亦無法保證能實現其反向槓桿投資目標。

反向槓桿式交易所買賣基金産品（簡稱「反向槓桿産品」）旨在締造相關指數表現反向（或相反）數倍的投資回報。反向槓桿産品有別於大多數不使用槓桿的ETF，且風險更高，僅適合充分了解並明白與短倉及運用槓桿相關的風險，並有意積極監察管理其投資組合的投資者。

與運用金融衍生工具相關風險

金融衍生工具的價格可能受諸多因素影響。市場缺乏流動性可能給金融衍生工具價格帶來負面影響，進而影響ETF的價值。尤其，場外交易金融衍生工具的流動性一般不及交易所買賣金融衍生工具。當交易所買賣金融工具退市時，會給其流動性及價格造成不利影響。投資期貨合約的ETF格外波動。期貨合約的價格可能受到相關資産價值及諸多因素的影響。建立期貨合約持倉所需的初始保證金存款較低，令其槓桿效應高。因此，期貨合約價格若出現相對較小的變動，即可能産生高於當初向中介人繳交保證金金額的利潤或損失。ETF面臨所持有金融衍生工具的相關交易對手風險，當基金經理為ETF賬戶進行交易所用的任何交易對手或任何經紀人破産時，按有關保證金賬戶應付予ETF的款項，ETF可能僅被列為無擔保債權人；否則，任何因此産生的損失將由ETF承擔。因此，ETF各單位的價格可能出現波動。投資者應注意，雖然ETF將使用金融衍生工具實現其投資目標，但投資者的責任僅限於其在ETF中的投資金額。

交易所买卖基金（“ETF”）、合成交易所买卖基金（“合成ETF” ）以及杠杆及/或反向式交易所买卖基金产品（“杠杆及反向产品”）的风险披露 

与ETF相关风险

ETF的主要目的是追踪相关指数或一组资产（比如商品而非指数）的表现（视情况而定）。

ETF各单位表现无法预测，并取决于金融、政治、经济和其他事件以及ETF的盈利、市场地位、风险状况、股东架构和派息政策。

当交易与ETF的表现相连时，阁下须注意，基准投资组合的任何成份证券或相关ETF的任何相关基准指数的价值下跌，该等ETF的权益价值一般将跟随下跌。投资于ETF相关交易的风险，与投资于交易所上市并组成该ETF的基准投资组合或相关指数的股本证券相近，例如因经济和政治发展、利率和汇率变动、市场流动性以及其他因素所引起的市场波动。

ETF各单位的资产净值将反映ETF投资组合的市值，但证券交易所的ETF所有单位的交易价格可能低于或高于每个单位的资产净值。尽管ETF的投资策略往往旨在复制与ETF相连的基准指数或者相关资产组合的走势，但基于多项因素（或结合有关因素）所引起的若干追踪误差，ETF可能与其追踪的基准指数或投资组合表现分歧。上述因素可能包括但不限于：追踪策略失败、从该ETF回报扣除的费用和开支，以及该ETF与其追踪的基准指数或投资组合的成份证券具有货币差异。尤其，当该ETF追踪的基准指数或市场的进出受到限制，例如新兴市场指数，由于成份证券欠缺流动性，为维持ETF价格与其资产净值一致而进行的单位增设或单位/权益赎回效率可能会受阻，导致该ETF 以较资产净值存在溢价或折让的价格进行交易。本金偿还或ETF之投资目标达成与否概无保证。

尽管ETF于证券交易所交易，但投资者须注意，ETF各单位或无流动的交易市场。ETF各单位是否有不断发展的活跃交易市场概无保证，亦无特定的基础来预测各单位可能以何种实际价格水平或规模来进行交易。

某些ETF包含一些特征，相关风险如下。该清单并非详尽清单。投资者须参阅相关ETF/产品说明书以知详情，尤其是风险因素。

与合成ETF相关风险

由于市场准入问题，为维持合成ETF价格与其资产净值（简称NAV）一致而进行的单位增设或赎回效率可能受阻，导致合成ETF以较资产净值存在溢价或折让的价格进行交易。此等风险可能为该产品的潜在回报带来负面影响。如果ETF采取合成复制策略，通过投资金融衍生工具以达成投资目标，阁下须注意：(i) 该ETF投资于金融衍生工具，故面对发行有关金融衍生工具的交易对手的信贷、潜在扩散和集中风险，而当该ETF尝试套现其持有的任何抵押品时，抵押品的市值可能已经大幅下跌；以及(ii)如果该等金融衍生工具的二级市场并不活跃，该ETF的流动性风险可能更高。

合成交易所买卖基金产品可能采取不同策略，包括但不限于指数追踪、复制策略、杠杆策略，或设有抵押品要求的任何衍生工具组合。投资者应阅读有关ETF的发行章程以了解其特色和风险。

以下是合成交易所买卖基金的主要相关风险：

(1)市场风险 – 投资者面对合成ETF之相关指数的政治、经济、货币和其他相关风险。

(2)交易对手风险 – 如果合成ETF投资于衍生工具以复制指数表现，投资者将面对发行有关衍生工具的交易对手的信贷风险，以及与指数相关的风险。另外，应考虑衍生工具发行人潜在扩散和集中风险（例如衍生工具发行人以国际金融机构为主，因此，如果合成ETF的一家衍生工具交易对手倒闭，可能为该合成ETF的其他衍生工具交易对手带来“连锁”效应）。部分合成ETF持有抵押品以降低交易对手风险，但当该ETF尝试套现有关抵押品时，亦可能有抵押品市值已大幅下跌的风险。

(3) 流动性风险 – 如果合成ETF投资于二级市场并不活跃的衍生工具，其附带的流动性风险将较高。衍生工具买卖差价扩阔可能导致损失。

(4) 追踪误差 –  合成ETF的表现与相关指数的表现可能并不一致，原因包括追踪策略失效、货币差异、费用和开支。

(5) 以折让或溢价进行交易 – 如果合成ETF追踪的指数／市场受到进出限制，为维持合成ETF价格与其资产净值一致而进行的单位增设或赎回效率或会受阻，导致合成ETF以较资产净值存在溢价或折让的价格进行交易。如果投资者以溢价投资于一只合成ETF，投资者在ETF终止运营时可能无法取回相关溢价。

与杠杆及/或反向式交易所买卖基金产品（简称“杠杆及反向产品”）相关风险

杠杆式交易所买卖基金产品（简称“杠杆产品”）通常旨在缔造其追踪的相关指数回报的数倍。另一方面，反向型交易所买卖基金（简称“反向产品”）通常旨在缔造与其追踪的相关指数相反的回报。为缔造特定的杠杆或反向回报，这些ETF通常需每日重新平衡投资组合。杠杆及反向产品有别于买入并持有的传统型ETF。投资者一般不应持有杠杆及反向产品的再平衡时距，一般来说为一天。杠杆及反向产品是用于掌握短期市场时机或对冲目的的交易工具，并不拟作长期投资。杠杆及反向产品仅适合以交易为主导并每日监察其持仓表现的资深投资者；而当杠杆及反向产品持仓隔夜时，其表现可能偏离相关指数表现。

杠杆产品旨在对指数建立杠杆式持仓。ETF可通过借贷、订立期货合约以及运用其他金融衍生工具使用杠杆。虽然杠杆作用可令ETF市场持仓显着提升，因而有机会缔造比不使用杠杆情况下更大的总回报，但是这同时亦令ETF在指数走势不利时面临更大亏损风险，并且指数价值的下跌将触发ETF资产净值加速大幅下挫。由于运用杠杆以及复式计算的影响，ETF的表现（在上行或下行市况）相比指数表现将会被倍大。ETF超过一天时期（尤其是在市况波动时期）的表现可能与同时段内指数表现显着有别。

投资于任何反向产品的投资者，在指数上升时将会亏损，这跟传统追踪指数ETF的效应相反。概不保证反向产品将与指数呈高度负相联性，因此亦无法保证能实现其反向杠杆投资目标。

反向杠杆式交易所买卖基金产品（简称“反向杠杆产品”）旨在缔造相关指数表现反向（或相反）数倍的投资回报。反向杠杆产品有别于大多数不使用杠杆的ETF，且风险更高，仅适合充分了解并明白与短仓及运用杠杆相关的风险，并有意积极监察管理其投资组合的投资者。

与运用金融衍生工具相关风险

金融衍生工具的价格可能受诸多因素影响。市场缺乏流动性可能给金融衍生工具价格带来负面影响，进而影响ETF的价值。尤其，场外交易金融衍生工具的流动性一般不及交易所买卖金融衍生工具。当交易所买卖金融工具退市时，会给其流动性及价格造成不利影响。投资期货合约的ETF格外波动。期货合约的价格可能受到相关资产价值及诸多因素的影响。建立期货合约持仓所需的初始保证金存款较低，令其杠杆效应高。因此，期货合约价格若出现相对较小的变动，即可能产生高于当初向中介人缴交保证金金额的利润或损失。ETF面临所持有金融衍生工具的相关交易对手风险，当基金经理为ETF账户进行交易所用的任何交易对手或任何经纪人破产时，按有关保证金账户应付予ETF的款项，ETF可能仅被列为无担保债权人；否则，任何因此产生的损失将由ETF承担。因此，ETF各单位的价格可能出现波动。投资者应注意，虽然ETF将使用金融衍生工具实现其投资目标，但投资者的责任仅限于其在ETF中的投资金额。

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