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Disclaimer
Information
- Determinants of “ETF” prices
The prices of ETF are determined by the trading value of the specific indexes contained in the portfolios plus any unpaid income. - Performance of ETF
Return of Investment is the most direct way to assess the performance of ETF, and the equation for calculation is shown below:
{the most recent price of the ETF－ the subscription price of the ETF＋ dividends paid out from the index stocks contained in the portfolio] ÷ the subscription price of the ETF}×100% - Currency for ETF Trade
The currency for ETF trade shall be determined by the exchange of the country where the ETF is registered. - Transaction fee of ETF
Charges may be applied to the subscription or holding of ETF, including subscription fee, redemption fee, management fee, custodian fee, and channeling service charges. Charges resulting from ETF trade itself such as the custodian fee of the custodian bank and miscellaneous expense will be internally deducted. Investors are not required to make extra payment. The calculation of these charges is the same as in the calculation of the fund management fee. - Basis of ETF price
This instrument is traded in offshore exchanges. The execution and confirmation of trade shall be based on the trading hours at the place of trade. As such, the price of this instrument may be determined only on the business day after the execution of trade due to different time zones. - Applicable tax code to ETF
The tax law of the USA requires that non-US nationals who have incomes, including cash dividends and others, inside US territory be subject to a 30% of withholding tax. This taxation standard may vary with the content of the trade or changes in the market.
Important Information on the Subscription of ETF
- The indexes under tracking
This refers to the indexes tracked by ETF, for example, the Dow Jones Industrial Average Index Fund –the Diamonds or DIA, contains 30 individual stocks of the Dow Jones Industrial Average as the components of the ETF. - ETF Profile
It includes current information on the ETF such as the minimum trading unit, the date of establishment, the exchange for transactions, market value of total assets, and the currency for transactions. - Principal holding of the instruments
The proportion of holding of the top 10 stocks so that investors can understand the most recent components in the portfolio of the ETF.
ETF Related Information
Investors Disclaimers
- Super Yield Investments are a form of structured product and are different from the traditional forms of time deposit. Therefore, it is not a substitute for regular time deposits and is not inclusive in the extent the Central Deposit Insurance Corporation (CDIC). Investors shall assume the credit risk of HSBC as their own responsibility.
- Investment entails risk. Return of investment is determined by market situation within the term of investment or the expected time span. The underlying performance in such period may be positive or negative, which in turn will affect the return. The return of this product may fall lower than the return of time deposits covering the same period. Investors shall prepare to assume risk, and may not earn the same interest as investments otherwise with the same principal. Investors shall make independent judgment on participation in any of the investment programs cautiously with reference to their own capacity in assuming risks, investment experience, investment objectives, financial positions and related conditions (effect on legal, taxation and accounting aspects).
