KUALA LUMPUR, Jan 9 (Bernama) -- CSOP FTSE US Treasury 20+ Years Index ETF (3433.HK) will be listed on the Hong Kong Stock Exchange on Jan 10 as Hong Kong’s first United States (US) Treasury 20+ Years exchange-traded fund (ETF).
To capture the performance of FTSE US Treasury 20+ Years Index, 3433.HK adopts a representative sampling strategy, with listing price at around HKD78 per unit, and trading lot of 10 and management fee of 0.20 per cent.
According to a statement, the Unlisted Share Class A of the ETF will be launched on the same day, with minimum initial investment of US$1,000 and 3433.HK has received US$50 million initial investment. (US$1=RM4.64)
CSOP Asset Management chief executive officer, Ding Chen said the company is proud to introduce the first long-term US Treasury Bonds ETF to Hong Kong.
“This allows investors to easily access the US Treasury Bonds market in a flexible and transparent manner,” she said.
Anticipations are high for rate cuts in 2024, whereby US Treasury Bonds often benefit from rate decreases during periods of monetary easing due to the inverse relationship between bond values and rates.
The FTSE US Treasury 20+ Years Index saw a total return of 24.7 per cent, an annualised return of 42.2 per cent, during the rate-cutting periods of July 2019 to March 2020.
CSOP FTSE US Treasury 20+ Years Index ETF emerges as an efficient solution for retail investors seeking to invest in the US Treasury Bonds, in which it offers ease of transaction and high transparency.
FTSE US Treasury 20+ Years Index measures the performance of the US Treasury securities, all rated investment grade, with maturity greater than or equal to 20 years that are in the FTSE World Government Bond Index.
The Index is a total return index, meaning that the performance of the index includes both coupon and principal return derived from US Treasury Bonds, with an average coupon rate of 2.68 per cent, average yield to maturity of 4.63 per cent with effective duration of 16.81.
-- BERNAMA
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