HONG KONG, Jan 9 (Bernama-BUSINESS WIRE) — CSOP FTSE US Treasury 20+ Years Index ETF (3433.HK) will list on the Hong Kong Stock Exchange on 10 January 2024 as Hong Kong’s first US Treasury 20+ Years ETF. To capture the performance of FTSE US Treasury 20+ Years Index, 3433.HK adopts a representative sampling strategy, with listing price at around HKD 78 per unit, and trading lot of 10 and management fee of 0.20%. The Unlisted Share Class A of the ETF will be launched on the same day, with minimum initial investment of USD 1,000. 3433.HK has received USD 50 million initial investment.
In the first half of 2023, bond ETFs attracted an inflow of USD 160.1 billion, emerging as the best-selling asset type worldwide1. Notably, USD Government Bond ETFs led the pack, securing the largest inflow of USD 71.6 billion2. This surge was largely propelled by an aggressive monetary tightening policy that pushed the federal fund rate to its highest level since 1981, between 5% and 5.5%3. Consequently, US Treasury Bonds, often described as “risk-free” assets, yielded higher returns than the S&P 5004 and emerging markets government bonds5, which typically have higher risk profiles.