Hong Kong will see the listing of five new exchange-traded funds (ETFs) on its main board today, expanding the number by 20 per cent. The five ETFs, issued by Deutsche Bank Group, track the stock markets in Hong Kong, India, South Korea, Vietnam and the United States, using indices compiled by the MSCI, FTSE and S&P. An ETF is an investment product backed by a portfolio of stocks in a particular market. Their units trade on the stock exchange like other stocks. Deutsche Bank, a major ETF manager in Europe, launched a Taiwan ETF last week. Deutsche Securities Asia, part of the Deutsche Bank Group, is the market maker for the six ETFs. Their listing will bring the number of ETFs on the Hong Kong exchange to 35, including the first one based on Vietnam's market. Brokers said the ETFs, which adopt a passive investment strategy by tracking indices, were becoming increasingly popular in Hong Kong. 'Investors are interested in ETFs as they make investment in overseas markets easier,' said Louis Tse Ming-kwong, a director of VC Brokerage. However, investors would be interested only in the ETFs based on the markets they were familiar with, Mr Tse said. 'Investors like to invest in ETFs that track the mainland or Taiwan markets,' he said. 'They also like markets that have high transparency and good investor protection measures such as the US. 'The markets in which investors know little about the economy or the companies, their interest in the related ETFs would not be very high.' Stock exchanges have been keen to grab ETF listings. With the five new listings, Hong Kong is now well ahead of Shanghai, which has three listed ETFs, and Taiwan, which has 11. However, it still trails exchanges in the US and Europe, where the market for ETFs have been developed for a long time.