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Letters | Cryptocurrency ETFs in Hong Kong? Let’s walk before we can run
- Readers discuss what products are suitable for individual investors, and the prospect of interest rate cuts
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I am responding to your article, “Hong Kong needs to speed up approval of spot cryptocurrency exchange-traded funds after US launch, industry insiders say” (January 14). I am reminded of the old saying, “Walk before you can run.”
Vanguard, the American fund management company, used to have a range of low-cost passive ETFs in Hong Kong investing in global markets. But they moved out some years ago.
The main reason, I believe, is that they would not pay commissions to banks and insurance companies to sell their funds. There may be other reasons. This is a problem across Asia where investment products are “sold, not bought”. In other words, distributors of financial products dominate over the producers and users of such products.
I used to invest in Vanguard’s ETFs in the Hong Kong stock market. After Vanguard moved out, I am now paying higher investment management fees on equity funds run by a Hong Kong-based company.
So, what are my issues?
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