CTBC Emerging Asia (ex China) USD Select Bond ETF (00848B)

Overview

The CTBC Emerging Asia (ex China) USD Select Bond ETF is an innovative exchange-traded fund (ETF) meticulously crafted to offer investors an opportunity to engage with the vibrant fixed income markets of emerging Asian economies, excluding China. This specialized investment vehicle is geared towards providing access to a diversified portfolio of USD-denominated bonds, issued by both sovereign and corporate entities within various emerging markets throughout Asia. The fund's strategic focus is to harness the yield potential and diversification benefits inherent in emerging Asian economies, while mitigating risks through the deliberate exclusion of China from its investment universe. By prioritizing sectors and regions exhibiting dynamic growth potential outside of China, the ETF aims to achieve a balanced blend of income and growth for its investors. It serves as a valuable tool for those looking to diversify their investments across the fast-evolving Asian bond markets, seeking both income generation and exposure to the region's economic expansion, with an added layer of risk management through geographic exclusion.

Products and Services

• Investment in USD-denominated Bonds

  This core service of the CTBC Emerging Asia (ex China) USD Select Bond ETF focusses on facilitating investor exposure to USD-denominated bonds. These bonds are issued by a variety of entities, including governments and corporations across emerging Asian markets. The emphasis on USD-denominated instruments is strategic, aimed at minimizing currency risk for investors, particularly those based in US dollar-denominated regions or countries. It also simplifies the investment process for those who seek to invest in foreign bonds without facing the complexities of foreign exchange.

• Diversified Bond Portfolio

  A key feature of the ETF is its commitment to providing a diversified bond portfolio. This diversification spans several dimensions, including issuer type (sovereign and corporate), economic sectors, and geographic locations within Asia, excluding China. By spreading investments across a range of bonds, the fund aims to lower the impact of any single investment's performance on the overall portfolio, thereby potentially reducing the risk and enhancing the stability of returns over time. This makes it an attractive option for investors who wish to mitigate risk while participating in the growth of emerging Asian markets.

• Exposure to Emerging Asian Economies (Excluding China)

  Distinctive to this ETF is its strategic decision to exclude China from its investment purview. This approach focuses on capturing the growth and opportunities in other emerging Asian economies, offering an alternative for investors looking to diversify their geographic exposure. It provides access to markets that may be less represented in global portfolios, yet are experiencing rapid economic growth, infrastructure development, and increasing domestic consumption. Through this geographic exclusion, the ETF offers an innovative risk management tool, enabling investors to navigate the complexities and volatilities associated with the Asian bond markets more effectively.