CTBC 0-1 Year US Treasury Bond ETF (00864B)

Overview

The CTBC 0-1 Year US Treasury Bond ETF is a specialized fixed income exchange-traded fund (ETF) managed by China Trust Securities Investment Trust Co., Ltd, operating under the CTBC brand. It is designed to provide investors with exposure to ultra-short-term U.S. Treasury securities, specifically targeting the segment of the market that involves physical U.S. government bonds with maturities ranging from zero to one year. Since its launch in October 2019, this ETF has established itself as a stable, low-volatility investment option, accumulating over 6 billion TWD in assets under management. Its primary attraction for investors is its focus on liquidity, low interest rate risk, and high credit quality, courtesy of its investment-grade, ultra-short-term treasuries. Additionally, the ETF boasts an efficient cost structure, evidenced by its low expense ratio of 0.16%, and is characterized by its transparent holdings. HSBC Holdings Plc issues shares for the fund, enhancing its credibility and appeal among both individual and institutional investors. This financial instrument plays a crucial role for investors managing short-term capital or in search of reliable cash management solutions within the broader market.

Products and Services

• Exposure to Ultra-Short-Term U.S. Treasury Securities

  The CTBC 0-1 Year US Treasury Bond ETF offers investors a focused investment in ultra-short-term U.S. Treasury securities. By passively replicating the performance of the ICE BofA US Treasury (0-1 Year) Index, the ETF aims to include physical U.S. government bonds within its portfolio that mature in zero to one year. This product is ideal for investors seeking investment-grade securities that come with high liquidity and low interest rate risk.

• Low-Volatility Investment Option

  With an emphasis on high credit quality U.S. Treasury bonds and an efficient expense structure, reflected in its expense ratio of 0.16%, the ETF positions itself as a low-volatility investment within the market. Its stable performance since inception in October 2019 offers a transparent and efficient investment vehicle for investors looking to minimize their portfolio risk.

• Transparent Holdings and Efficient Cost Structure

  The CTBC 0-1 Year US Treasury Bond ETF is characterized by its transparent holdings, allowing investors to clearly understand where their capital is allocated. Coupled with an efficient cost structure, the ETF ensures investors can manage their investments cost-effectively, making it a compelling choice for both individual and institutional investors focused on short-term investments or reliable cash management solutions.