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Hang Seng JPMorgan US Equity Premium Income Active ETF

Stock code: 3476

Hang Seng JPMorgan US Equity Premium Income Active ETF (the “Fund”) offers both listed class of Units (“Listed Class Units”) and unlisted classes of Units (“Unlisted Class Units”). Switching between Unlisted Class Units and Listed Class Units is not available.

(Capitalised terms used herein but not otherwise defined will have the same meanings as defined in the Hong Kong Offering Document of the Hang Seng Investment Funds Series IV (the “Series”) and the relevant Appendix of the Fund)

Applicable to both Listed Class Units and Unlisted Class Units:

  • The Fund is a feeder fund that seeks to achieve its investment objective by investing substantially (at least 90% of its Net Asset Value) into Master ETF. The Master ETF is not authorised by the SFC for offering to the public in Hong Kong. The management company of the Master ETF is JPMorgan Asset Management (Europe) S.à r.l., an entity that is not licensed by the SFC. The Manager has no ability to control the manner in which the Master ETF is managed. There can be no assurance that the Master ETF’s investment objectives and strategies will be successfully achieved.
  • The Fund is a feeder fund and is subject to risks related to master/feeder fund structure and risks associated with the Master ETF’s investment which include equity market risk, active investment management risk, concentration risk, risks associated with call options strategy, trading risks and trading differences risk.
  • The Fund is also subject to investment risks, risks associated with investment in financial derivative instruments, termination risks, reliance on the same group risk, differences in dealing arrangements between Listed Class Units and Unlisted Class Units risk, differences in fee and cost arrangements between Listed Class Units and Unlisted Class Units risk and dividend risk.
  • The Master ETF uses an option strategy which is intended to provide income and may forego some capital appreciation potential, while retaining the risk of loss should the price of the underlying investment declines.
  • The Manager may at its discretion pay dividend out of capital or effectively out of the capital^ of the Fund. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any such capital gains attributable to that original investment. Any such distributions may result in an immediate reduction in the Net Asset Value per Unit.

Risks applicable to Listed Class Units only:

  • The Listed Class Units of the Fund is subject to trading risks, trading differences risk, reliance on market maker risks and currency risk.

Risks applicable to Unlisted Class Units only:

  • The Unlisted Class Units of the Fund is subject to currency and exchange rate control risk and, where applicable currency hedging risk.

Investments involve risks and investors may lose substantial part of their investment in the Fund. Investors should not only base on this material alone to make investment decisions, but should read the Fund’s offering documents (including the full text of the risk factors stated therein) in detail.

Why Hang Seng JPMorgan US Equity Premium Income Active ETF ?

Invest in the strategy of the world’s largest active ETF in HKD

Remain resilient amid market uncertainty

Enhance income and aim for steady monthly distributions1

The distribution is not guaranteed, and the dividends may be paid out of the capital. Investors should be aware of point 5 of the important risk warnings.

Invest in the strategy of the world’s largest active ETF in HKD 2

Hang Seng Investment, collaborating with J.P. Morgan Asset Management, is introducing a best-in-class investment strategy to Hong Kong
Strategy of the world’s largest active ETF
Strategy of the world’s largest active ETF
Widely recognised by global investors
What is the strategy of the Hang Seng JPMorgan US Equity Premium Income Active ETF3?

A less volatile US stock portfolio

Employ bottom-up fundamental approach to constitute a US stock portfolio with lower volatility

+

Income enhancing option strategy

Write S&P 500 Index call options and roll over systematically to generate extra income

=

Hang Seng JPMorgan US Equity Premium Income Active ETF

Invest with HKD
Trade during Hong Kong trading hours
What are the merits of writing call options?
Option premium and market volatility are positively correlated: The higher the market volatility, the higher the option premium
Merit 1
Enhance potential income
Merit 2
Offset partial losses from the stock holdings
! Investors should be aware that writing call options may curb the potential upside of this Fund.

Remain resilient amid market uncertainty4

Seek to build a less volatile US stock portfolio and offset partial losses by writing call options
Under what market scenarios does the strategy pay off?

Scenario 1：​

Market downturn

Option premium may offset partial losses from the stock holdings

Scenario 2：​

Range-bound​

Option premium may offset partial losses from the stock holdings​ or enhance potential income

Scenario 3：​

Highly volatile

Option premium, which is positively correlated to market volatility, may enhance potential income

Enhance income and aim for steady monthly distributions5

Enhance portfolio income with options premium from writing S&P 500 Index call options

Enhance Portfolio Income

Dividend Yield Smoothing

(Regular Review)

Master ETF Portfolio Information6

Sector Weightings

Top Holdings6

#
Company Name
Industry
Index Weight
1
Microsoft
Information Technology
2.7%
2
Nvidia
Information Technology
2.5%
3
Amazon.com
Consumer Discretionary
2.1%
4
Meta Platforms
Communication Services
2.0%
5
Visa
Financials
2.0%
6
Mastercard
Financials
1.9%
7
Trane Technologies
Industrials
1.8%
8
Progressive Corp
Financials
1.7%
9
Oracle
Information Technology
1.6%
10
Apple
Information Technology
1.6%

Fund Information

Key facts

Investment Objective

Provide income and long-term capital growth.

Stock Code
3476
Listing Date
9 July 2025
Listing Exchange
The Stock Exchange of Hong Kong Limited (the "SEHK")
Issue Price
15
Lot Size
500
ISIN Code
HK0001157814
Base Currency
USD
Trading Currency
HKD
Aggregate Management Fee
Up to 0.70% in respect of the Listed Class only
Total Expense Ratio (TER)7
0.85%

FAQ

Hang Seng JPMorgan US Equity Premium Income Active ETF (the “Feeder Fund”), offered in Hong Kong through both listed and unlisted share classes, invests at least 90% of its Net Asset Value (NAV) in the Ireland-registered master ETF.

Beyond holding an actively managed portfolio of large-cap US stocks based on prudent stock selections, the master ETF also incorporates an overlay of selling S&P 500 Index call options. The integrated portfolio aims to achieve less volatility than the market1 through active stock selection while enhancing income through premiums received from call option writing.

Unlike conventional active US equity strategies that seek to achieve higher total return over the market1, the strategy focuses on delivering a higher distribution rate and better risk-adjusted returns compared to the market1.

1

The market refers to the US stock market as represented by the S&P 500 Index.

Market volatility can be measured by implied volatility, which reflects the market’s expectation of future price fluctuations in the underlying asset.
Implied volatility is a key input in option pricing models. When implied volatility rises, it suggests larger potential price swings in the underlying asset, increasing the probability that the stock price will end up exceeding the strike price of a call option. This higher probability inflates the option’s premium.
In periods of high market uncertainty, implied volatility tends to spike, driving up demand for options as investors seek to hedge or speculate. This increased demand further pushes call option premiums higher.
Investors should be aware that writing call options may curb the potential upside of this strategy.

Monthly cash dividends (if any) are at the discretion of HSVM (the “Manager”). The Manager may make declaration of distribution every month. There is no guarantee of regular distribution and, if distribution is made, the amount being distributed.
To smooth the monthly distributions, the Manager may adjust the distribution level of the Feeder Fund based on a regular review on the master ETF’s distribution records and other investments (if any).
The Manager may, at its discretion, pay dividend out of capital. The Manager may also, at its discretion, pay dividend out of gross income while all or part of the fees and expenses of the Feeder Fund are charged to/paid out of the capital of the Feeder Fund, resulting in an increase in distributable income for the payment of dividends by the Feeder Fund and therefore, the Feeder Fund may effectively pay dividend out of capital.

[1]

There is no guarantee by the Manager of regular distribution of dividends and, if any dividend is paid, the amount being distributed.

[2]

Source: Bloomberg, Hang Seng Investment, J. P. Morgan Asset Management, based on asset under management as of 31 May 2025. The Ireland-registered Master ETF and the world’s largest active ETF are managed under the same investment strategy. Assets under management and ranking are based on Bloomberg’s definition of active ETF.

[3]

The Fund achieves this strategy via a master-feeder fund structure. The Fund invests substantially in the Master ETF.

[4]

Sources: Hang Seng Investment, J.P. Morgan Asset Management. Solely for illustration purposes. The dividend yield, option premium yield and portfolio return are based on historic observations, and are presented only for reference. Investments involve risks (including the possibility of loss of the capital invested). Prices of investment products may go up as well as down, and past performance information presented is not indicative of future performance. A positive dividend rate (if any) does not imply a positive return.

[5]

Sources: Hang Seng Investment, Bloomberg. US stocks market dividend yield refers to the dividend yield of the S&P 500 Index. Options premium data are based on historical observations of the equivalent ETF listed in the US, which shares the same investment objectives as the Master ETF. Solely for illustration purposes. Past performance information presented is not indicative of future performance. There is no guarantee by the Manager of regular distribution of dividends and, if any dividend is paid, the amount being distributed.

[6]

Source: Bloomberg, Hang Seng Investment, J. P. Morgan Asset Management, as of 31 May 2025.

[7]

Source: As the fund is newly established, this figure is an estimate only and represents the sum of the estimated ongoing expenses chargeable to the units over a 12-month period expressed as a percentage of the estimated average NAV of the units over the same period. The actual figures may be different from the estimate. Please refer to the “Fees and Expenses” section in the Prospectus for details. This figure may vary from year to year.

Disclaimer

The content is prepared by Hang Seng Investment Management Limited (“HSVM”). The content shall not be changed or modified and the content shall not be used in any other manner unless with the prior written consent of HSVM. At the time of publication of the content, certain information of the content is obtained and prepared from sources which HSVM believes to be reliable, and HSVM does not warrant, guarantee or represent the accuracy, validity or completeness of such information. Under no circumstances shall the content constitute a representation that it is correct as of any time subsequent to the date of publication. HSVM reserves the right to change the content without notice. The content is for reference only and is the view of HSVM and does not constitute and should not be regarded as an offer or solicitation to anyone to invest into any investment product. You should read the relevant investment product’s offering document (including the full text of the risk factors and charges stated therein). Investment involves risks (including the risk of loss of capital invested), prices of investment product units may go up as well as down, past performance is not indicative of future performance. A positive distribution rate (if any) does not imply a positive return. Fund award (if any) is for reference only and does not guarantee any fund performance or the performance of HSVM. If you have any doubt about the content or investment product (including its offering document), you should seek independent professional financial advice. HSVM will not be liable to anyone for any cost, claims, fees, penalties, loss or liability incurred if the content is improperly used. The content shall not be duplicated or stored or distributed or “Hang Seng Investment Management Limited”, “恒生投資管理有限公司”, “恒生投資管理”, “恒生投資” or any marks containing these names shall not be used without the prior written consent of HSVM. Where the investment products referred to in the content have been authorized by the Securities and Futures Commission or the China Securities Regulatory Commission or other regulators (as the case may be), such authorization is not a recommendation or endorsement of the investment products and does not guarantee the commercial merits of the investment products or their performance. It does not mean the investment products are suitable for all investors nor is it an endorsement of their suitability for any particular investor or class of investors. The content has not been reviewed by the Securities and Futures Commission.