Follow Us on WeChatKey TakeawaysActive ETFs brought in an estimated US$24.7 billion of inflows in January 2024, more than double the US$10.7 billion registered in January 2023.Central bank interest rate hikes have increased market volatility and higher rates have impacted single stock returns, creating opportunities for active managers.Hong Kong is one of the most advanced markets for active ETFs in terms of product innovation, ecosystem development and capital flows.In 2023, active ETFs contributed HK$16.2 million to the average daily turnover of Hong Kong’s ETF market, up 214% from 2022.Hong Kong’s ETF market now includes a range of exposures, including commodity, equity, fixed income, money market and virtual asset classes, as well as a wide range of themes such as healthcare, metaverse, technology and energy.Hong Kong’s growing ETF space offers a number of additional trading advantages, including trading in the Asian timezone and the city’s simple and low tax regime.Globall
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