According to @EricBalchunas, the cheapest Hong Kong ETF that tracks U.S. stocks charges 28 bps, underscoring a fee disadvantage versus offshore markets (source: @EricBalchunas). He reports that regional allocators prefer London- or U.S.-listed ETFs over local HK funds primarily due to lower costs (source: @EricBalchunas). He also notes the Vanguard Effect—industry-wide fee compression driven by low-cost competitors—remains very early in Hong Kong, indicating limited fee competition to date (source: @EricBalchunas). For trading and allocation decisions, this observation aligns with a cost-driven tilt toward London/U.S. tickers versus HK counterparts until local pricing compresses (source: @EricBalchunas).

According to Eric Balchunas, the Vanguard Effect has accelerated to a point where Vanguard is no longer the cheapest option in most categories, despite recent fee cuts. This aligns with the investor utopia predicted by Bogle, highlighting the intensified competition in the market. Source: Bloomberg.