Mirae Asset launches Global X United States 3-5 Year Treasury ETF to expand its fixed income product lineup

 

  • Mirae Asset launches Global X United States 3-5 Year Treasury ETF (3450) to further expand its fixed income portfolio.
  • The Company has a total of 36 ETFs listed in Hong Kong[1]to meet the growing demand for income and thematic growth ETFs.

HONG KONG, July 11, 2024 /PRNewswire/ -- Mirae Asset Global Investments (Hong Kong) Limited (the "Company" or "Mirae Asset") announces the launch of the Global X United States 3-5 Year Treasury ETF (3450), which began listing on the Hong Kong Stock Exchange today, makes it easier for investors to buy and sell United States Treasury bonds.

United States Treasuries are generally considered low-risk assets. United States Treasury yields have recently been at all-time highs since the global financial crisis, and medium-term United States Treasury yields offer a balancing balance between yield and volatility amid the interest rate cycle. With bond prices expected to rise as expectations of a rate cut in 2024 rise, many investors are recently deploying United States Treasuries to capture price and yield returns.

However, due to factors such as trading hours in the United States market and withholding tax on dividends, it may be inconvenient for Hong Kong investors to trade United States Treasury bonds. The Global X United States 3-5 Year Treasury Note ETF (3450) provides investors with an effective solution for Hong Kong investors to use this ETF as an investment vehicle to invest in United States Treasury bonds during local trading hours.

Ms. Sun Xinyi, Head of ETF Fixed Income Fund Management at Mirae Asset Global Investments (Hong Kong) Limited, said, "We are delighted to launch the Global X United States 3-5Treasury bond ETFs to enhance our range of income investment products. With the market anticipating a rate cut by the Federal Reserve in the coming months, the ETF will provide investors with an attractive tool to capture potential capital appreciation opportunities while maintaining a better risk-return ratio."

Mr. Tony Chiu, Chief Executive Officer of Mirae Asset Global Investments (Hong Kong) Limited, said, "The launch of this ETF further expands our fixed income ETF portfolio to provide more diversified income streams. We remain committed to enhancing our product portfolio to meet the evolving needs of our investors."

Global X United States 3-5 Year Treasury ETF (3450).Tracks the Mirae Asset United States 3-5 Year Treasury Index. With the launch of this ETF, the Company currently has a total of 36 ETFs listed in Hong Kong, including 5 fixed income ETFs. Our products cover ETFs in thematic growth, income, core, and commodity categories.

About Mirae Asset Global Investment Group

Mirae Asset Global Investments Group (the "Group") is an asset management company with over US$245 billion in assets under management as of 31 March 2024[2]。 The Group offers a wide range of investment products, including mutual funds, exchange-traded funds (ETFs) and alternative investment products. The Group has more than 1,000 employees in 26 offices around the world, including 200 investment professionals.

With a portfolio of more than 558 ETFs and a large product lineup, the Group's global ETF platform provides investors with high-quality, cost-effective investment products that capture emerging investment themes and disruptive technologies in global markets.[3] The Group manages ETFs with total assets of US$119 billion and is listed in Australia, Canada, Colombia, Hong Kong, India, Japan, Korea, Viet Nam, United Kingdom and United States.[4] 

About Global X ETFs:

Global X ETFs was launched in 2008. For more than a decade, our mission has been to provide investors with unprecedented and informed investment solutions. Our portfolio includes 254 ETF investment strategies with over $50 billion in assets under management[5]。 We are known for our thematic growth, income and exposure to international ETFs. At the same time, we also offer core, commodity and alpha funds to meet a wider range of investment objectives. Global X is a member of Mirae Asset Financial Group, a leading global financial services company with over US$602 billion in assets under management.[6]

Mirae Asset Global Investments Hong Kong Website: https://www.am.miraeasset.com.hk/

Global X ETFs Hong Kong website: https://www.globalxetfs.com.hk/zh-hant/ 

 

1. Source: Mirae Asset Global Investing, as of 11 July 2024.

2. Source: Mirae Asset Global Investing, as of 31 March 2024.

3. Source: Mirae Asset Global Investing, as of 31 March 2024.

4. Source: Mirae Asset Global Investments, as of 31 March 2024.

5. Source: Mirae Asset Global Investing, as of 31 December 2023.

6. Source: Mirae Asset Financial Group, as of 31 March 2024.

 

Important data

Investors should not rely on this document alone to make investment decisions, but should read the details and risk factors set out in the Explanatory Memorandum of this product. Investment involves risk. Past performance is not indicative of future performance. There is no assurance that the principal amount will be repaid. Investors should note that:

 

  • The Global X United States 3-5 Year Treasury Bond ETF (the "Fund") aims to provide investment results that, before fees and expenses, closely correspond to the performance of the Mirae Asset United States 3-5 Year Treasury Index (the "Index").
  • The Fund is subject to the credit/default risk of the issuer of the debt securities in which it may invest; credit rating risk, i.e. the credit rating issued by a rating agency has certain limitations and does not always guarantee the creditworthiness of the security and/or issuer; credit downgrade risk, i.e. the Manager may not be able to sell the downgraded debt securities; interest rate risk, i.e. when interest rates fall, the price of debt securities rises, and when interest rates rise, the price of debt securities falls; policy risk, i.e. changes in United States macroeconomic policy may affect the capital markets of the United States and affect the pricing of bonds within the Fund's portfolio, which may adversely affect the Fund's returns; Sovereign debt risk, i.e. the Fund's investment in United States Treasury securities may be subject to political, social and economic risks. In the event of default by the United States Treasury, the Fund may suffer significant losses; Valuation risk, i.e. the valuation of the Fund's instruments may involve uncertainties and judgmental decisions. If the valuation is proved to be incorrect, it may affect the calculation of the Fund's net asset value.
  • The performance of the underlying index cannot be guaranteed as it is new and has a relatively short operating history, which makes it difficult for investors to assess its past performance. The Fund may be subject to higher risks than other ETFs that track more mature indices with a longer operating history.
  • The underlying index is subject to concentration risk by tracking the performance of markets in a single geographic region (i.e., the United States) and is concentrated in debt securities of a single issuer (i.e., the United States Treasury). The value of the Fund may fluctuate more dramatically than that of a fund with a more diversified portfolio and may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory matters that could affect the United States markets.
  • The base currency of the Fund is USD but the trading currency of the Fund is HKD. The net asset value of the Fund and its performance may be adversely affected by fluctuations in the exchange rates between such currencies and the base currency and changes in exchange rate control measures.
  • The borrower may not be able to return the securities on time or even at all. The Fund may suffer losses as a result and there may be delays in recovering the lent securities. This may limit the Fund's ability to meet delivery or payment obligations in response to redemption requests. As part of a securities lending transaction, there is a risk that the collateral will be undervalued due to inaccurate pricing of the loaned securities or changes in the value of the loaned securities. This may result in significant losses to the Fund.
  • The trading price of the Units on the Hong Kong Stock Exchange is affected by market factors such as the supply and demand of the Units. As a result, the Units may be traded at a substantial premium or discount to the Fund's Net Asset Value.
  • Distributions out of and/or effectively out of capital imply a return or withdrawal of an investor's original investment or part of any capital gains attributable to that original investment. Any such distributions involving the payment of distributions out of the capital of the Fund or effectively out of the capital of the Fund may result in an immediate reduction in the Fund's net asset value per unit and will reduce the capital available for future investments.

 

disclaimer

This document is intended for use by Hong Kong investors only. This document is for informational and illustrative purposes only and is for your use only. This document is not a solicitation, offer or recommendation to buy or sell any securities or other financial instruments. The information contained in this document is provided as general market commentary only and does not constitute regulated financial advice, legal, tax or other regulated services of any kind.

Certain statements contained in this document are statements of expectations for the future and other forward-looking statements. Opinions, opinions and estimates are subject to change without notice and are based on assumptions that may or may not be conclusively realized or proven to be accurate. Actual results, results or events may differ materially from such statements.

Investment involves risk. Past performance is not indicative of future performance. There can be no assurance that the performance of the fund will yield a return and there may be no return or loss of the amount invested. It may not be suitable for persons who are unfamiliar with the underlying securities or who are unwilling or unable to bear the risk of loss and ownership of that investment. Before making any investment decision, investors should read the Explanatory Memorandum for details and risk factors. Investors should ensure that they fully understand the risks associated with the Fund and should consider their own investment objectives and risk tolerance. Investors should seek independent professional advice before making any investment.

The information and opinions provided in this document have been obtained or derived from sources believed by Mirae Asset Global Investments (Hong Kong) Limited ("MAGIHK") to be reliable, but we make no representation as to their accuracy or completeness. Investors should decide for themselves whether or not to rely on the information in this document.

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