Cathay US Corporate A-and Above 10+ Years Liquid ETF (00761B)

Overview

The Cathay US Corporate A-and Above 10+ Years Liquid ETF is a distinguished fixed income exchange-traded fund designed to cater to investors aiming to diversify their portfolio with long-duration, investment-grade corporate bonds denominated in US dollars. With a strategic focus on bonds carrying a credit rating of A or higher and maturities exceeding 10 years, this ETF seeks to provide a stable income stream and exposure to high-quality US corporate debt. The ETF tracks the Bloomberg US Corporate A- and Above 10+ Years Liquid Index, employing a passive market value-weighted strategy to mirror the index's performance. As a financial instrument, it represents a transparent, cost-effective way for both institutional and retail investors in Taiwan to access the US long-term corporate bond market, highlighting its significance in the regional financial landscape.

Products and Services

• Long-duration, Investment-grade Corporate Bonds

  The ETF specializes in bonds with maturities over 10 years and ratings of A or higher, offering a focused investment in high-quality US corporate debt. This product is ideal for investors looking to invest in stable, reliable sources of income while maintaining a long-term investment horizon.

• Tracking of the Bloomberg US Corporate A- and Above 10+ Years Liquid Index

  By closely mirroring the performance of the Bloomberg US Corporate A- and Above 10+ Years Liquid Index, the ETF leverages a passive investment strategy. This replication approach ensures investors gain diversified exposure to the market segment of long-term, investment-grade US corporate bonds without needing to individually select bonds.

• Regular Dividend Distributions

  In alignment with its objective to provide stable income streams, the ETF offers regular dividend distributions. This feature caters to the needs of investors who prioritize income generation from their investments, making it an attractive option for those seeking periodic income alongside capital appreciation.

• Diversified Access Across Various Sectors

  The ETF's portfolio composition reflects a strategic diversification across a broad range of sectors, ensuring that investors' exposure is not concentrated in any single industry. This diversification minimizes specific sector risks and enhances the potential for steady returns over time.

• Transparent Rule-based Approach to Constituent Selection

  Employing a transparent and rule-based method for selecting constituents, the ETF adheres to clearly defined criteria to determine its portfolio composition. This systematic selection process provides investors with a clear understanding of the fund's investment strategy and underlying asset selection, promoting transparency and trust.