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– The launch of the Global X US Treasury 3-5 Year ETF (3450) enriches Mirae Asset’s suite of fixed income ETFs
– With a total of 36 ETFs listed in Hong Kong[1], Mirae Asset is well-positioned to meet the diverse demands of investors seeking income-investing and thematic growth strategies
HONG KONG, July 11, 2024 /PRNewswire/ — Mirae Asset Global Investments (Hong Kong) Limited, (the “Firm” or “Mirae Asset”) today announced the launch of its new Global X US Treasury 3-5 Year ETF (3450). The fund, which begins trading on the Hong Kong Stock Exchange (“HKEX”) today, provides investors with convenient access to US Treasuries.
US Treasuries, often considered a low-risk asset, are currently renowned for their historical high yield levels since the Global Financial Crisis. Intermediate-term US Treasury Bonds provide a balanced option between returns and volatility across interest rate cycles. As market expectations for rate cuts in 2024 rise, bond prices are anticipated to increase. Investors are seeking US Treasury Bonds to manage price and income returns.
However, accessing the US Treasury Bond market could be inconvenient for Hong Kong investors due to factors such as differing trading hours and dividend withholding taxes from the US market. The Global X US Treasury 3-5 Year ETF (3450) emerges as an efficient solution. The ETF serves as an investment vehicle for Hong Kong investors to trade US Treasury Bonds during Hong Kong local trading hours.
Ms. Xinyi Sun, Head of Fixed Income ETF Portfolio Management of Mirae Asset Global Investment (Hong Kong) Limited, stated “We are thrilled to introduce this Global X US Treasury 3-5 Year ETF to the market, which will enhance our suite of income-generating investment products for investors. With the anticipated rate cuts by the US Federal Reserve in the coming months, this ETF will provide investors with a compelling tool to capitalize on potential capital appreciation opportunities, while maintaining a favorable risk-return profile.”
Mr. Wanyoun CHO, Chief Executive Officer of Mirae Asset Global Investments (Hong Kong) Limited, said: “The launch of this ETF bolsters our suite of fixed income ETFs, offering investors access to diversified sources of income. We remain committed to enhancing our product lineup to cater the evolving needs of our investors.”
The Global X US Treasury 3-5 Year ETF (3450) tracks the Mirae Asset US Treasury 3-5 Year Index. With this new ETF, the Firm now offers a total of 36 ETFs listed in Hong Kong, including 5 fixed income ETFs, spanning a diverse array of investment capabilities from thematic growth, income, core to commodities.
About Mirae Asset Global Investments Group
Mirae Asset Global Investments Group (the “group”) is an asset management organization with over US$245 billion in assets under management as of March 31, 2024[2]. The organization provides a diverse range of investment products including mutual funds, exchange traded funds (“ETFs”), and alternatives. Operating out of 26 offices worldwide, the group has a global team of more than 1,000 employees, including more than 200 investment professionals.
The group’s global ETF platform features a line-up of 558 ETFs that offer investors high quality and cost-efficient exposure to newly emerging investment themes and disruptive technologies in the global markets.[3] The group’s ETFs have combined assets under management of US$119 billion and are listed in Australia, Canada, Colombia, Hong Kong SAR, India, Japan, Korea, Vietnam, the United Kingdom, and the United States.[4]
About Global X ETFs
Global X ETFs was founded in 2008. For more than a decade, our mission has been empowering investors with unexplored and intelligent solutions. Our product line-up features over 254 ETF strategies and over $50 billion in assets under management.[5] While we are distinguished for our Thematic Growth, Income, and International Access ETFs, we also offer Core, Commodity, and Alpha funds to suit a wide range of investment objectives. Global X is a member of Mirae Asset Financial Group, a global leader in financial services, has a presence in 19 global markets and the group’s managed assets exceed US$602 billion in assets under management worldwide.[6]
Mirae Asset Global Investments Hong Kong: https://www.am.miraeasset.com.hk/
Global X ETFs Hong Kong: www.globalxetfs.com.hk
[1] Source: Mirae Asset Global Investments, July 11, 2024.
[2] Source: Mirae Asset Global Investments, March 31, 2024.
[3] Source: Mirae Asset Global Investments, March 31, 2024.
[4] Source: Mirae Asset Global Investments, March 31, 2024.
[5] Source: Mirae Asset Global Investments, December 31, 2023.
[6] Source: Mirae Asset Financial Group, March 31, 2024.
Important Information
Investors should not base investment decisions on this material alone. Please refer to the Prospectus for details including product features and the risk factors. Investment involves risks. Past performance is not indicative of future performance. There is no guarantee of the repayment of the principal. Investors should note:
- The investment objective of Global X US Treasury 3-5 Year ETF (the “Fund”) is to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the Mirae Asset US Treasury 3-5 Year Index (the “Underlying Index”).
- The Fund is exposed to the Credit/Default risk of issuers of the debt securities that the Fund may invest in; the Credit Rating risk that the credit ratings assigned by rating agencies are subject to limitations and do not guarantee the creditworthiness of the security and/or issuer at all times; the Downgrading risk that the Manager may or may not be able to dispose of the debt securities that are being downgraded; the Interest rate risk that the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise; the Policy risk that the changes in macro-economic policies in the US may have an influence over the US’ capital markets and affect the pricing of the bonds in the Fund’s portfolio, which may in turn adversely affect the return of the Fund; the Sovereign debt risk that the Fund’s investment in US Treasury securities may be exposed to political, social and economic risks that the Fund may suffer significant losses when there is a default of the US Treasury; the valuation risk that the valuation of the Fund’s instruments may involve uncertainties and judgmental determinations. If such valuation turns out to be incorrect, this may affect the Net Asset Value calculation of the Fund.
- The Underlying Index is a new index. The Underlying Index has minimal operating history by which investors can evaluate its previous performance. There can be no assurance as to the performance of the Underlying Index. The Fund may be riskier than other exchange traded funds tracking more established indices with longer operating history.
- The Underlying Index is subject to concentration risk as a result of tracking the performance of a single geographical region, namely the US, and is concentrated in debt securities of a single issuer, namely the US Treasury. The Fund’s value may be more volatile than that of a fund having a more diverse portfolio and may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the US market.
- The base currency of the Fund is USD but the trading currency of the Fund is in HKD. The Net Asset Value of the Fund and its performance may be affected unfavourably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls.
- The borrower may fail to return the securities lent out in a timely manner or at all. The Fund may as a result suffer from a loss or delay when recovering the securities lent out. This may restrict the Fund’s ability in meeting delivery or payment obligations from realisation requests. As part of the securities lending transactions, there is a risk of shortfall of collateral value due to inaccurate pricing of the collateral, adverse market movements in the collateral value or change of value of securities lent. This may cause significant losses to the Fund.
- The trading price of the Units on the SEHK is driven by market factors such as the demand and supply of the Units. Therefore, the Units may trade at a substantial premium or discount to the Fund’s Net Asset Value.
- Payments of distributions out of capital and/or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distributions involving payment of distributions out of capital or effectively out of capital of the Fund may result in an immediate reduction in the Net Asset Value per Unit of the Fund and will reduce the capital available for future investment.
Disclaimer
This document is for Hong Kong investors only. This document is provided for information and illustrative purposes and is intended for your use only. It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument. The information contained in this document has been provided as a general market commentary only and does not constitute any form of regulated financial advice, legal, tax or other regulated services.
Certain of the statements contained in this document are statements of future expectations and other forward-looking statements. Views, opinions and estimates may change without notice and are based on a number of assumptions which may or may not eventuate or prove to be accurate. Actual results, performance or events may differ materially from those in such statements.
Investment involves risk. Past performance is not indicative of future performance. It cannot be guaranteed that the performance of the Funds will generate a return and there may be circumstances where no return is generated or the amount invested is lost. It may not be suitable for persons unfamiliar with the underlying securities or who are unwilling or unable to bear the risk of loss and ownership of such investment. Before making any investment decision, investors should read the Prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Funds and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investment.
Information and opinions presented in this document have been obtained or derived from sources which in the opinion of Mirae Asset Global Investments (Hong Kong) Limited (“MAGIHK”) are reliable, but we make no representation as to their accuracy or completeness. We accept no liability for a loss arising from the use of this document.
Products, services and information may not be available in your jurisdiction and may be offered by affiliates, subsidiaries and/or distributors of MAGIHK as stipulated by local laws and regulations. This document is not directed to any person in any jurisdiction where the availability of this document is prohibited. Persons in respect of whom such prohibitions apply or persons other than those specified above must not access this document. It is your responsibility to be aware of and to observe all applicable laws and regulations of any relevant jurisdiction. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction.
This document is issued by MAGIHK (Licensed by the Securities and Futures Commission for Types 1, 4 and 9 regulated activities under the Securities and Futures Ordinance). This document has not been reviewed by the Securities and Futures Commission or the applicable regulator in the jurisdiction in which this article is posted and no part of this publication may be reproduced in any form, or referred to in any other publication, without express written permission of MAGIHK.
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