⚠️ EC² Invest can make mistakes. Please double check information in this report.

iShares Hang Seng TECH ETF

3067.HK:HKEX

equity ETF | passive | BlackRock iShares | Tracks Hang Seng Indexes Company Limited

Market Price

HK$12.01 (26 Jan 2026)

+24.09% (YoY)

NAV

HK$12.08

-0.60% Discount

Yield

0.69%

+32.00% (YoY)

Expense Ratio

25.00%

-66% vs Avg: 74.00%

Box Set (ETF)

⚡ Executive Summary

📊 The Bottom Line

This ETF tracks the Hang Seng TECH Index, providing focused exposure to 30 of the largest technology-related companies listed in Hong Kong. It offers an efficient and low-cost vehicle for investors seeking to capitalize on Greater China's technology growth. Bull case projects NAV reaching HK$14.41 (+19.2%) while bear case suggests HK$9.06 (-25%) over 12-18 months, with its tight tracking contributing to its appeal.

⚖️ Risk vs Reward

The underlying Hang Seng TECH Index holdings currently trade at a P/E of 20.72x and P/B of 3.06x, which is generally below the global 'Sector Equity Technology' category average of 24.27x P/E and 5.48x P/B, suggesting a more attractive valuation relative to broader tech markets. While the sector experienced significant drawdowns in prior years, recent performance indicates a recovery trend. The ETF's low expense ratio and high liquidity reduce ETF-specific risks. However, concentration in Greater China technology introduces geopolitical and regulatory risks. Upside potential hinges on continued earnings recovery and supportive policy, while downside is tied to renewed regulatory headwinds or a broader economic slowdown in the region.

🚀 Why 3067.HK Could Soar

• Robust earnings recovery in key underlying tech giants could drive a 15-20% EPS growth for the index, potentially translating to a 10-15% increase in ETF NAV over 12 months.
• Positive policy signals from Beijing, such as supportive measures for the digital economy and platform companies, could boost investor confidence and expand valuation multiples by 5-10%.
• Strong global demand for semiconductors and electric vehicles, where several index constituents are leaders, could create significant tailwinds, contributing an additional 5-7% to returns.

⚠️ What Could Go Wrong

• Intensified regulatory scrutiny or new antitrust measures against large platform companies could compress valuations by 10-15%, leading to a commensurate drop in ETF NAV.
• Slower-than-expected economic growth in China, impacting consumer spending and advertising revenue for internet companies, could result in a 8-12% decline in underlying earnings.
• Heightened geopolitical tensions or trade disputes between major global powers could negatively affect investor sentiment towards Chinese equities, leading to significant capital outflows and a 5-10% valuation haircut.

🏢 Fund Overview

What Are You Actually Buying

The Hang Seng TECH Index tracks the 30 largest technology-related companies listed in Hong Kong, encompassing a broad spectrum of tech-enabled businesses from internet platforms to hardware and software providers.
These companies are predominantly focused on the Greater China market, operating across diverse sub-sectors including e-commerce, social media, cloud computing, fintech, and electric vehicles.
The sector is characterized by rapid innovation, strong growth potential driven by a large domestic market, and significant influence from regulatory policies and geopolitical dynamics.

Market Dynamics & Outlook

The Hong Kong tech sector has shown resilience and signs of recovery recently, with a YTD NAV return of 4.24% and a 1-year NAV return of 26.69%.
Key drivers include the ongoing digital transformation of industries, increasing internet penetration, and government initiatives aimed at fostering technological innovation, particularly in areas like AI and advanced manufacturing.
However, the sector remains sensitive to macroeconomic shifts, consumer sentiment in China, and evolving regulatory frameworks, which can introduce periods of volatility.

🎯 Why This Matters

Understanding this market is crucial because it represents a high-growth segment of the global economy, yet it carries unique risks associated with its geographic concentration and regulatory environment. The Hang Seng TECH Index offers exposure to established and emerging leaders within this dynamic landscape, making it a pivotal investment for those with a strategic view on Greater China's technological advancement.

📈 Valuation & Analysis

Historical Performance

YTD

+4.24%

+26.69%

Yearly Growth (3Y)

+10.76%

Yearly Growth (5Y)

-7.72%

Yearly Growth (Since Inception)

-4.91%

Current Valuation

The iShares Hang Seng TECH ETF's underlying holdings currently trade at an aggregate price-to-earnings (P/E) ratio of 20.72x and a price-to-book (P/B) ratio of 3.06x. These valuation multiples are notably below the 'Sector Equity Technology' category averages of 24.27x for P/E and 5.48x for P/B. The ETF offers a current dividend yield of 0.66%. Historically, the P/E ratio for the Hang Seng TECH Index has seen considerable fluctuation, reflecting periods of high growth expectations and subsequent regulatory pressures. The current valuation suggests that the market has de-risked some of the previous exuberance, placing the ETF's holdings in a more attractive, though not deeply discounted, territory compared to global technology peers. This valuation context implies a potential for upside if earnings growth continues and regulatory certainty improves.

The Bull Case - Upside to

Renewed Domestic Consumption Growth

High Probability

A rebound in China's domestic consumption could significantly boost revenue for e-commerce and social media giants (e.g., Alibaba, Meituan, Tencent) within the index, potentially adding 10-15% to their earnings and driving a 5-8% increase in ETF NAV.

Innovation in AI and New Technologies

Medium Probability

Accelerated advancements and adoption of AI technologies by index constituents (e.g., Baidu, Tencent) could unlock new revenue streams and efficiency gains, leading to a 7-10% uplift in corporate valuations and a 3-5% rise in ETF NAV.

Positive Regulatory Clarity and Support

Medium Probability

Clearer and more supportive government policies towards the technology sector, particularly for internet platforms and data security, could alleviate investor uncertainty, fostering valuation multiple expansion of 5-8% for the index and a 2-4% NAV boost.

The Bear Case - Downside to

Escalating Geopolitical Tensions

Medium Probability

Increased trade or technological restrictions imposed by global powers could severely impact supply chains and market access for semiconductor (e.g., SMIC) and hardware companies (e.g., Xiaomi), potentially reducing their revenue by 10-15% and causing a 5-7% decline in ETF NAV.

Persistent Economic Headwinds in China

High Probability

A prolonged slowdown in China's economic growth could suppress consumer spending and corporate investment, directly impacting the profitability of e-commerce and advertising-dependent firms, leading to a 8-12% earnings contraction and a 4-6% ETF NAV drop.

Intensified Domestic Competition and Price Wars

Medium Probability

Increased competition within key segments like e-commerce, food delivery, and cloud services could lead to margin compression for market leaders, potentially eroding their profitability by 5-10% and causing a 2-4% decrease in the ETF's NAV.

Risk/Reward Assessment

The iShares Hang Seng TECH ETF presents a balanced risk-reward profile for investors seeking exposure to China's technology sector. On the upside, the current valuation, relative to global peers and historical levels, suggests room for multiple expansion if domestic consumption recovers and regulatory clarity improves. Analyst sentiment for key holdings is predominantly positive, indicating fundamental strengths are recognized. Potential catalysts like AI innovation and government support could further accelerate growth. However, significant risks remain. The ETF's concentration in Greater China technology exposes it to macroeconomic headwinds within the region and the potential for renewed or intensified regulatory actions. Geopolitical tensions also pose a considerable threat to the highly interconnected technology supply chains. Investors should weigh the compelling long-term growth narrative against these inherent volatilities and maintain a long-term investment horizon to navigate potential short-term fluctuations.

Peer Comparison

The iShares Hang Seng TECH ETF (3067.HK) offers a highly competitive option for investors seeking exposure to the Hang Seng TECH Index, primarily due to its significantly lower expense ratio compared to its direct peer, the CSOP Hang Seng TECH Index ETF (3033.HK). This cost efficiency directly translates to better net returns over time. Furthermore, 3067.HK has demonstrated superior 1-year performance. Its substantial AUM also suggests strong liquidity, which is beneficial for efficient trading.

Fund	Expense Ratio	AUM (B)	1Y Return	3Y Return	5Y Return	Yield
iShares Hang Seng TECH ETF (3067.HK) ⭐	25.00%	HK$19.1B	26.69%	10.76%	-7.72%	0.66%
CSOP Hang Seng TECH Index ETF (3033.HK)	104.00%	HK$80.3B	25.33%	10.70%	N/A	0.00%
Global X Hang Seng TECH ETF (2837.HK)	44.00%	HK$0.4B	N/A	N/A	N/A	N/A

🎯 Why This Matters

The detailed valuation and peer comparison highlight 3067.HK as a cost-effective and well-performing vehicle within its niche. Its lower expense ratio offers a significant advantage for long-term investors, while its robust performance indicates efficient tracking of the underlying Hang Seng TECH Index. Investors must balance this efficiency against the inherent sector-specific and geopolitical risks, making it suitable for those comfortable with the high-growth, high-volatility nature of Chinese technology investments.

📊 Appendix

Top 10 Holdings (80+ of ETF Value)

#	Ticker	Logo	Name	Sector	Weight
1	0981.HK	S	Semiconductor Manufacturing International Corporation	Technology	8.7%
2	9988.HK	A	Alibaba Group Holding Limited	Consumer Cyclical	8.1%
3	3690.HK	M	Meituan	Consumer Cyclical	7.9%
4	1211.HK	B	BYD Company Limited	Consumer Cyclical	7.7%
5	0700.HK	T	Tencent Holdings Limited	Communication Services	7.6%
6	9999.HK	N	NetEase, Inc.	Communication Services	7.2%
7	1810.HK	X	Xiaomi Corporation	Technology	6.8%
8	1024.HK	K	Kuaishou Technology	Communication Services	6.0%
9	9618.HK	J	JD.com, Inc.	Consumer Cyclical	5.0%
10	9888.HK	B	Baidu, Inc.	Communication Services	4.8%

Fund Mechanics

How It Works

The iShares Hang Seng TECH ETF (3067.HK) is designed to provide investors with investment results that, before fees and expenses, closely correspond to the performance of the Hang Seng TECH Index (Net Total Return version). This is achieved through a passive management strategy, utilizing physical replication to hold a portfolio of securities that, as far as practicable, matches the constituents of the underlying index. The Hang Seng TECH Index comprises the 30 largest technology-related companies listed on the Hong Kong Stock Exchange, selected based on market capitalization and their significant business exposure to technology themes. The index is reviewed and rebalanced regularly to ensure it accurately reflects the dynamic nature of the sector. The ETF aims to minimize tracking error, which is the divergence between its performance and that of its benchmark index.

Holdings Breakdown

Number of Holdings

Top 10 Concentration

7979.0%

Top 20 Concentration

9200.0%

Category	Weight	Description
Consumer Cyclical	42.1%	Companies involved in goods and services sensitive to business cycles and consumer discretionary spending.
Communication Services	28.6%	Companies that enable communication and offer media and entertainment services.
Technology	26.5%	Companies engaged in the development of software, hardware, semiconductors, and IT services.
Consumer Defensive	2.8%	Companies providing goods and services that are considered necessities, less sensitive to economic cycles.

Cost Efficiency

Expense Ratio

25.00%

Median Bid-Ask Spread

5.000%

Expense Ratio History

Year	Expense Ratio
2025	25.00%
2024	25.00%
2023	25.00%

Performance History

Year	ETF Return	Benchmark Return	Tracking Diff	Volatility	Max Drawdown
2021	-32.64%	-32.47%	0.17%	0.00%	0.00%
2022	-26.89%	-26.67%	0.22%	0.00%	0.00%
2023	-8.54%	-8.26%	0.28%	0.00%	0.00%
2024	19.48%	19.89%	-0.41%	0.00%	0.00%
2025	24.34%	24.68%	-0.34%	0.00%	0.00%

Annualized Return Since Inception

-4.91%

Detailed Peer Comparison

Ticker	Name	Issuer	Exp Ratio	AUM (B)	1Y	3Y	5Y	Yield	StdDev 3Y	Sharpe 3Y	Spread
3067.HK ⭐	iShares Hang Seng TECH ETF	BlackRock iShares	25.00%	HK$19.1B	26.7%	10.8%	-7.7%	0.66%	34.57%	0.32	0.600%
3033.HK	CSOP Hang Seng TECH Index ETF	CSOP Asset Management Ltd.	104.00%	HK$80.3B	25.3%	10.7%	N/A	0.00%	N/A	N/A	N/A
Category Average			74.00%	—	26.0%	10.7%	-7.7%	0.33%	—	0.16	—

Risk Metrics

Beta

0.34

Alpha

1.70

R-Squared

3.25

Standard Deviation

1 Year	3 Years	5 Years	10 Years
N/A	34.57%	N/A	N/A

Sharpe Ratio

1Y	3Y	5Y	10Y
N/A	0.32	N/A	N/A

Sortino Ratio

3 Years	5 Years
N/A	N/A

Maximum Drawdown

1 Year	3 Years	5 Years	Since Inception
N/A	-33.89%	N/A	-33.89%

Upside Capture

3300.0%

Downside Capture

3100.0%

Correlations

Liquidity & Trading

Volume

Avg Daily Shares

30,373,343

Avg Daily Dollar Volume

HK$364.7M

Trend

increasing

Bid-Ask Spread

Metric	Value
Median (Percent)	5.000%
Median (Dollar)	HK$0.01
During Hours	N/A
At Close	N/A
Volatility	low

Premium/Discount to NAV

Metric	Value
Current	-2.00%
30-Day Average	-2.00%
1-Year Average	-2.00%
Standard Deviation	N/A
Max Premium (1Y)	0.00%
Max Discount (1Y)	-2.00%

Creation/Redemption Activity

Trend

string

Net Flows

Period	Net Flow
1 Year	HK$0.0M

⚠️ Disclaimer: This ETF research report is for informational and educational purposes only. It does not constitute investment advice, a recommendation, or an offer to buy or sell securities. EC² Invest is not a registered investment advisor. All data is sourced from public sources and may contain errors. Past performance does not guarantee future results. ETF investing involves risk, including possible loss of principal. Always conduct your own research and consult with a qualified financial professional before making investment decisions.