Traditional ETFs: Tech stocks are only the surface-level focus—the real rotation has already shifted toward gold, semiconductors, and Japan.

On August 5, the most actively traded traditional ETFs were still CSOP Hang Seng Tech Index ETF (03033) and Tracker Fund of Hong Kong (02800). $TRACKER FUND OF HONG KONG (02800.HK)$ . 03033 recorded approximately HK$15.962 billion in turnover, up 1.04%; 02800 recorded approximately HK$15.868 billion in turnover, up 0.30%. Combined, these two products accounted for over HK$31.8 billion in turnover, remaining the primary entry and exit points for capital in Hong Kong’s ETF market. However, focusing solely on trading rankings would miss the day’s truly significant shift: the key takeaway isn’t which index—Hang Seng or Hang Seng Tech—rose more, but that capital is starting to rotate from broad-market ETFs into gold, semiconductors, and overseas markets.

Hang Seng Tech is still outperforming the Hang Seng Index, but the gap isn’t as large as expected.

CSOP Hang Seng Tech Index ETF gained 5.68% over the past 10 days and 4.31% over the past 20 days; Tracker Fund of Hong Kong rose 4.18% over the past 10 days and 7.06% over the past 20 days. These figures indicate that tech stocks showed stronger momentum in the last 10 days, but over a 20-day horizon, the broader Hang Seng Index performed better. In other words, tech’s recent outperformance appears more like a short-term rally rather than sustained leadership over the past month.

The Hang Seng Tech ETF segment also exhibits clear liquidity stratification. CSOP Hang Seng Tech Index ETF (.HKD 3033) recorded turnover close to HK$16 billion on the day; Hang Seng Tech Index ETF (.HKD 3032) $Hang Seng TECH Index ETF (03032.HK)$ and iShares Hang Seng Tech ETF (03067). $iShares Hang Seng TECH ETF (03067.HK)$ Their trading volumes were approximately HK$198 million and HK$191 million, respectively. All three products posted gains between 0.94% and 1.04% on the day, with very similar 10-day returns ranging from about 5.57% to 5.68%. Tracking differences are minimal; the real distinction lies in trading liquidity. For investors needing frequent trading or placing larger orders, 03033 remains more convenient; however, average buy-and-hold investors shouldn’t assume it’s inherently superior in all scenarios just because it has the highest trading volume.

China semiconductor ETF surged 7%, but this remains a rebound from prior losses.

Global X China Semiconductor ETF (03191) $Global X China Semiconductor ETF (03191.HK)$ rose 7.06% on August 5, making it the top gainer among actively traded ETFs that day, with a trading volume of approximately HK$653.2 million and an intraday price swing of 7.51%. However, its 5-day return was still down 0.32%, down 12.86% over the past 10 days, and down 19.80% over the past 20 days—a classic case of 'strong single-day performance amid ongoing medium-term weakness.'

Other China tech-manufacturing-related ETFs also rebounded in tandem:

– Global X China Small Giants ETF (02815) $Global X China Little Giant ETF (02815.HK)$ gained 5.95%

– CSOP STAR Market 50 ETF (03109) $CSOP STAR 50 INDEX ETF (03109.HK)$ Up 5.16%

– PP STAR Market 50 (03151) $Premia China STAR50 ETF (03151.HK)$ up 4.97%

However, most related products still posted significant declines over the past 10 and 20 days. For short-term traders, such ETFs may offer trading opportunities, as rebounds following sharp oversold conditions are typically substantial; however, a single-day surge should not be directly interpreted as a medium-term trend reversal. The most practical observation is whether the gains made on August 5 can be sustained in the next trading session. If the ETF gaps higher but quickly gives back those gains, it likely reflects short-covering; only if volume remains robust and prices do not retreat to pre-breakout levels can the move be considered the start of a sustained rebound.

The gold sector’s strength isn’t limited to a single product—it’s the entire industry chain strengthening together.

SPDR Gold ETF (02840) $SPDR Gold Trust (02840.HK)$ rose 2.11% on August 5, with turnover of approximately HK$823.8 million and a volume ratio of 2.81x. Harvest Gold Miners ETF – E Fund (02824) $EFUND GOLD MI ETF (02824.HK)$ gained even more, up 8.00%, rising 9.05% over the past 5 days, 8.70% over the past 10 days, and 16.93% over the past 20 days.

It is normal for gold mining ETFs to outperform physical gold ETFs, as gold miners are generally more sensitive to both gold prices and corporate earnings. However, this also means they shouldn’t be viewed as simple substitutes for SPDR Gold ETF. Investors seeking to minimize single-stock and operational risks while primarily capturing gold price movements should favor physical gold ETFs; those aiming to amplify gold’s upside and willing to accept equity market and earnings volatility will find gold miner ETFs more responsive.

On the same day, the 2x leveraged long gold ETF also rose 5.16%, with notably higher trading volume. This indicates that gold’s strength wasn’t isolated to one product but was evident across traditional ETFs, gold miner ETFs, and leveraged ETFs simultaneously. Such sector-wide strengthening is more noteworthy and sustainable than a sudden spike in a single product.

Japanese and Korean markets have begun to recover, but their underlying structures differ.

ChinaAMC Japan Equity Hedged (03160) $ChinaAMC MSCI Japan Hedged to USD ETF (03160.HK)$ rose 2.14%, with turnover of approximately HK$829.6 million and a volume ratio of 5.91x; CSOP KOSPI (03121) $CSOP KOSPI 200 ETF (03121.HK)$ advanced 3.25%, up 16.27% over the past 5 days. Both are Asia ex-Japan market ETFs, but their trading implications differ. The Japan equity hedged ETF has partially mitigated JPY currency exposure, making it more suitable for investors seeking pure Japanese equity exposure; in contrast, the CSOP KOSPI ETF is more susceptible to combined influences from the Korean won, major Korean tech stocks, and the semiconductor cycle.

03121 has surged sharply over the past 5 days, yet it is still down 0.74% over 10 days and 6.36% over 20 days—similar to leveraged ETFs tracking SK Hynix and Samsung Electronics, reflecting a recovery from prior losses. In contrast, 03160 posted returns of 1.69%, 0.12%, and 0.68% over the past 5, 10, and 20 days respectively, showing a much steadier trend; its sudden spike in trading volume on the day is more noteworthy than its price gain.

High-yield and covered-call ETFs haven’t lost their utility, but they weren’t the main drivers of momentum on the day.

Hang Seng High Dividend Yield ETF (03466) $Hang Seng High Dividend 30 Index ETF (03466.HK)$ rose 0.40%, up 5.96% over the past 20 days; Global X Hang Seng China Enterprises Covered Call ETF (03416) $Global X HSCEI Covered Call Active ETF (03416.HK)$ gained 0.29%; CSOP Hang Seng China Enterprises Covered Call ETF (02802) $CSOP HSCEI Covered Call Active ETF (02802.HK)$ Up 0.35%; Global X Hang Seng Tech Covered Call ETF (03417) $Global X Hang Seng TECH Covered Call Active ETF (03417.HK)$ Up 0.59%. These products don’t rise as much as tech, gold, or semiconductors, but they weren’t designed to lead during sharp rallies anyway. Covered call ETFs generate income by selling call options, performing better in sideways or moderately rising markets. When the market surges suddenly, part of the upside may be capped by the option strategy. Therefore, it’s misleading to judge covered call ETFs as underperforming simply because their daily gains lag behind. The real question investors should ask is whether they seek explosive price growth or more stable income with lower volatility.

How should we interpret today’s traditional ETF market dynamics?

Broad-market ETFs still dominate trading volume, but marginal capital has started seeking alternative directions. Tech stocks are slightly outperforming the Hang Seng Index in the short term; gold—from physical bullion to gold miners—is broadly strengthening; Chinese semiconductor stocks are experiencing high-volatility, oversold rebounds; and Japan-focused ETFs are showing notably higher trading volumes. In summary: On August 5, the key takeaway from the traditional ETF market isn’t whether the Hang Seng Index rose 0.3% or the Hang Seng Tech Index gained 1%, but rather that capital is rotating away from broad-market products into gold, semiconductors, and overseas markets—the scope of sector rotation is expanding.

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