29 February 2024: Wealth Product Ideas
Fund Name (Ticker) | CSOP FTSE US Treasury 20+ Years Index ETF (3433 HK) |
Description | The investment objective of the CSOP FTSE US Treasury 20+ Years Index ETF is to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the FTSE US Treasury 20+ Years Index. There is no assurance that the ETF will achieve its investment objective. |
Asset Class | Global Fixed Income |
30-Day Average Volume (as of 27 Feb) | 13,635 |
Net Assets of Fund (as of 27 Feb) | US$54,126,212 |
Average Yield to Maturity (as of 26 Feb) | 4.49% |
Weighted Average Maturity (as of 26 Feb) | 26.08 yrs |
Weighted Average Coupon (as of 26 Feb) | 2.88% |
Management Fees (Annual) | 0.25% |
- No dividend tax: potential savings can be up to nearly 37% (~1.5% p.a.) over the past 20 years.
- Converting US-listed treasury ETF holding (i.e., TLT) into 3433 HK to save the 30% dividend tax each quarter.
- Asia hour trading: investors can position their UST view ahead of US macro news/policy move through real-time exchange-traded prices.
- Multiple currency choices: directly use HKD to trade 3433 on exchange to potentially save FX cost or create/redeem shares in USD in the primary market.
- Flexible execution: real-time execution to lock UST price in Asia hours or leave the order at the market on close US time.
Top 10 Holdings
(as of 26 February 2024)
(Source: Bloomberg)
Fund Name (Ticker) | iShares 20+ Year Treasury Bond ETF (TLT) |
Description | The iShares 20+ Year Treasury Bond ETF seeks to track the investment results of an index composed of U.S. Treasury bonds with remaining maturities greater than twenty years. |
Asset Class | Fixed Income |
30-Day Average Volume (as of 26 Feb) | 44,472,286 |
Net Assets of Fund (as of 27 Feb) | US$48,748,212,645 |
12-Month Trailing Yield (as of 26 Feb) | 3.61% |
Weighted Average Maturity (as of 26 Feb) | 25.29 yrs |
Weighted Average Coupon (as of 26 Feb) | 2.58% |
Management Fees (Annual) | 0.15% |
- Upside potential in rate-decreasing periods: The Fed turns to timing of rate cuts, and bond prices are expected to benefit from it. The higher a bond’s maturity/duration, the more its value will increase as interest rates fall.
- Customize your exposure to interest rate risk: target the duration you are looking for with iShares U.S. Treasury bond ETFs.
- Seek to target different segments of the yield curve: offers exposure to Treasury bonds that mature within specific maturity years or ranges, allowing you to target points on the yield curve.
Top 10 Holdings
(as of 26 February 2024)
(Source: Bloomberg)
