Fubon 10+ Years US Corporate Bond BBB Ex China ETF (00740B)

Overview

The Fubon 10+ Years US Corporate Bond BBB Ex China ETF is an innovative fixed-income exchange-traded fund crafted to track the performance of long-term, U.S. corporate bonds rated BBB, purposefully excluding bonds from Chinese companies. It caters to investors seeking a focused exposure to the U.S. investment-grade corporate bond market, with a unique emphasis on securities that possess maturities of over ten years and are positioned at the lower end of the investment-grade spectrum. While these bonds are considered the lowest tier of investment grade, they still exhibit relatively low credit risk, especially when compared to high-yield bonds. This ETF stands out by specifically excluding issuers based in China, aiming to attract international investors who prefer to minimize their direct credit exposure to China within their USD-denominated corporate bond investments. Designed for income-seeking individuals, this fund offers regular dividend distributions derived from the coupon payments of the underlying bonds. Moreover, it provides a sophisticated tool for diversification across various sectors within the U.S. corporate market, aligning with its goal to enhance yield while adhering to investment-grade criteria.

Products and Services

The Fubon 10+ Years US Corporate Bond BBB Ex China ETF provides a distinctive range of services catering to the specific needs of its investors:

• Exposure to U.S. Investment Grade Corporate Bonds

This ETF offers investors a targeted approach to investing in U.S. corporate bonds that are rated BBB, excluding any bonds issued by companies headquartered in China. It is designed for those who seek to engage with the lower tier of investment-grade bonds, favoring long-duration assets for their portfolios.

• International Investment Opportunities Excluding China

By intentionally omitting bonds issued by Chinese entities, this fund provides a unique opportunity for investors wishing to avoid credit exposure to China. This feature appeals to a broad base of international investors looking for diversified USD-denominated corporate bond investments exclusively outside of China’s economic influence.

• Regular Income through Dividend Distributions

The fund strategically distributes dividends, passing on the coupon payments received from the underlying bond holdings to investors. This characteristic makes it an attractive option for those in pursuit of consistent income streams from their investment portfolios.

• Diversification Across U.S. Corporate Sectors

To mitigate the risks associated with concentrated investments, this ETF offers an avenue for diversification within the U.S. corporate bond market. It spans across various sectors, allowing investors to spread their exposure and potentially reduce their overall investment risk.

• Yield Enhancement and Investment-Grade Standards

With an emphasis on long-duration BBB-rated securities, the fund positions itself as an instrument for potentially higher yields, while still maintaining the safety and relative stability of investment-grade standards. It is aimed at investors desiring to enhance returns without deviating from an emphasis on creditworthiness and lower risk profiles.