Hang Seng Index ETF Guide: Tracker Fund (2800) vs iShares (2823)
Contents
TL;DR
The Hang Seng Index (HSI) tracks Hong Kong's 82 largest listed companies. The two main ETFs are 2800.HK (Tracker Fund of Hong Kong) β the original, largest by AUM, 0.09% expense ratio β and 2823.HK (iShares Hang Seng Index ETF) β slightly more liquid intraday, 0.50% expense ratio. For most long-term HK investors, 2800.HK is the better pick due to its lower fee and quarterly dividends. You can buy both via moomoo with 0.03% commission. Do not confuse HSI ETFs with Hang Seng Tech ETFs (3067/3032) β these track entirely different indexes.
What Is the Hang Seng Index?
The Hang Seng Index (ζηζζ°, HSI) is Hong Kong's premier stock market benchmark, managed by Hang Seng Indexes Company. As of early 2026, it tracks 82 constituent stocks selected by market cap, liquidity, and sector representation. The index is reviewed quarterly.
Major constituents include:
- Financials: HSBC (0005.HK), AIA (1299.HK), Bank of China HK (2388.HK)
- Tech: Tencent (0700.HK), Alibaba (9988.HK), Meituan (3690.HK)
- Property: Link REIT (0823.HK), Sun Hung Kai Properties (0016.HK)
- Utilities & industrials: CLP Holdings (0002.HK), MTR (0066.HK)
The index is price-weighted by free-float market cap. Since the 2021 reform that expanded from 50 to 82 stocks and capped individual stock weight at 8%, single-company concentration risk has decreased.
How We Evaluated These ETFs {#methodology}
We assessed HSI ETFs across four dimensions:
| Dimension | What We Measured |
|---|---|
| Cost | Total expense ratio (TER) + broker commission |
| Liquidity | Average daily turnover, bid-ask spread |
| Dividend | Yield, frequency, withholding tax treatment |
| Accessibility | Minimum lot size, broker availability |
The Main HSI ETFs Compared
2800.HK β Tracker Fund of Hong Kong (ηε―εΊι)
The Tracker Fund was launched in 1999 as part of the Hong Kong government's exit from stocks purchased during the 1998 financial crisis. It remains the largest ETF listed in Hong Kong by AUM.
| Feature | Detail |
|---|---|
| Expense Ratio | 0.09% per year |
| AUM | ~HKD 90β100 billion |
| Lot Size | 500 units |
| Dividend | Quarterly (Mar / Jun / Sep / Dec) |
| Approximate Yield | ~3.5β4% (2025 trailing) |
| Manager | State Street Global Advisors Asia |
Who it's for: Long-term passive investors who want the lowest possible cost to track the HSI. The quarterly dividend is genuinely attractive for income investors.
Key downside: Lot size of 500 units means each lot costs roughly HKD 10,000β12,000 at current prices, which may be a barrier for very small investors starting out.
2823.HK β iShares Hang Seng Index ETF
iShares (BlackRock) listed this ETF to provide an alternative with higher intraday trading volume and smaller lot sizes.
| Feature | Detail |
|---|---|
| Expense Ratio | 0.50% per year |
| AUM | ~HKD 8β10 billion |
| Lot Size | 100 units |
| Dividend | Semi-annual |
| Approximate Yield | ~3.0β3.5% (2025 trailing) |
| Manager | BlackRock (iShares) |
Who it's for: Investors who want smaller lot sizes for more gradual position building, or who trade more actively intraday.
Key downside: The 0.50% TER is meaningfully higher than 2800.HK's 0.09%. Over 10 years on a HKD 100,000 position, this difference compounds to roughly HKD 4,100 in additional fees.
Other HSI-Related ETFs
| Ticker | Name | TER | Notes |
|---|---|---|---|
| 2828.HK | Hang Seng H-Share Index ETF | 0.55% | Tracks mainland H-shares, NOT full HSI |
| 3115.HK | SPDR HSI ETF | 0.15% | Smaller AUM, less liquid than 2800 |
Note: 2828.HK tracks the H-Share Index (HSCEI), not the HSI. These are often confused but track different universes of stocks.
HSI ETF vs Hang Seng Tech ETF: Know the Difference
Many investors confuse HSI ETFs with Hang Seng Tech ETFs. These are fundamentally different:
| HSI ETFs (2800/2823) | HSTECH ETFs (3067/3032) | |
|---|---|---|
| Index | Hang Seng Index (82 stocks) | Hang Seng Tech Index (30 tech stocks) |
| Sector bias | Diversified (financials, property, tech) | Technology-heavy |
| Volatility | Lower | Higher |
| 2024 performance | -4.8% | +20.1% |
| Typical yield | 3.5β4% | 1.0β2.0% |
If you want broad HK market exposure with meaningful dividend income, HSI ETFs are the choice. If you want concentrated tech exposure, see our Hang Seng Tech ETF guide.
How to Buy HSI ETFs in Hong Kong
Step 1: Open a Brokerage Account
moomoo is one of the most popular choices for HK ETF investing. New account holders typically receive a 180-day commission-free period on HK stocks, which covers 2800.HK and 2823.HK.
Standard moomoo HK stock fees after promo period:
- Commission: 0.03% (minimum HKD 3)
- Platform fee: HKD 15 per order
- No custody fee
For comparison, see our full moomoo HK review or broker fee calculator.
Step 2: Fund Your Account
Most HK residents fund via FPS (Faster Payment System) or bank transfer. Overseas investors can use SWIFT transfer or services like Wise for lower conversion costs.
Step 3: Search and Buy
Search "2800" or "2823" in the platform. These trade in HKD during HKEX hours (9:30AMβ4PM HKT, MondayβFriday).
Lot size reminder:
- 2800.HK: 500 units per lot (~HKD 10,000β12,000/lot)
- 2823.HK: 100 units per lot (~HKD 2,000β2,500/lot)
Dividend Details
2800.HK pays quarterly dividends, which are deposited directly into your brokerage account in HKD. The dividend is sourced from dividends paid by HSI constituent stocks.
Withholding tax: HK does not impose withholding tax on dividends for non-HK residents. This is a meaningful advantage over investing in US ETFs (which have 30% US withholding tax for non-US investors).
Tracking Performance
TradingView provides free charts for 2800.HK and 2823.HK, including RSI, moving averages, and volume indicators. You can set price alerts without a paid subscription β useful for monitoring entry points when HSI retraces.
A practical setup: track the 200-day moving average on a weekly chart. The HSI has historically shown mean-reversion tendencies, with significant drawdowns (>20%) followed by recoveries over 2β3 year periods.
Historical Returns
| Period | HSI Total Return (incl. dividends) |
|---|---|
| 2020 | -3.4% |
| 2021 | -14.1% |
| 2022 | -15.5% |
| 2023 | -13.8% |
| 2024 | +19.6% |
| 10-year annualised (2015β2024) | ~4.2% |
HK equities have underperformed US equities significantly over the past decade. This is the primary risk investors must accept. The higher dividend yield (3.5β4%) partially compensates, but total return has lagged the S&P 500's ~12% annualised return over the same period.
Is Investing in 2800.HK Worth It?
Arguments for:
- Low expense ratio (0.09%)
- Genuine dividend income (3.5β4% yield, quarterly)
- HKD exposure without currency conversion
- No withholding tax for non-HK investors
- Geographic diversification from US-heavy portfolios
Arguments against:
- HK market has structurally underperformed for 10 years
- Heavy exposure to mainland China economic outlook
- Property sector headwinds ongoing
- Currency peg risk (HKD pegged to USD, not always aligned with HK fundamentals)
For investors who already hold US and global ETFs (VOO, QQQ, VT), a small allocation to 2800.HK can provide geographic diversification and income. We would not make it a core holding given the 10-year track record.
FAQ
Is 2800.HK or 2823.HK better?
For long-term investors, 2800.HK is generally better due to the much lower expense ratio (0.09% vs 0.50%). The fee difference becomes significant over multi-year holding periods. 2823.HK is useful if you prefer smaller lot sizes for gradual position building.
Can overseas investors buy HK ETFs?
Yes. Brokers like moomoo and IBKR allow investors from Australia, Singapore, the UK, and other countries to open HK stock accounts. KYC verification is done remotely. HK does not impose withholding tax on dividends for non-residents.
What is the minimum investment for 2800.HK?
One lot = 500 units. At approximately HKD 21β23 per unit (early 2026 range), one lot costs roughly HKD 10,500β11,500. If this is too large for your budget, 2823.HK with 100-unit lots (~HKD 2,100β2,500) offers a lower entry point.
How does 2800.HK compare to a global ETF like VT?
2800.HK tracks only HK-listed stocks. VT (Vanguard Total World) covers 9,000+ stocks globally including HK at market-weight (~1%). 2800.HK has a higher dividend yield but higher concentration risk. Most diversified long-term investors should hold global ETFs as their core allocation, with HK ETFs as a regional tilt if desired.
Are HSI ETF dividends taxed?
HK does not withhold tax on dividends. Your home country's tax rules apply. For example, Australian investors would include HSI ETF dividends in assessable income at their marginal tax rate, potentially with a foreign income tax offset available.