A new tool for investing in government bonds!The benchmark Treasury bond ETF was listed today with t

Mondo Finance Updated on 2024-01-30

Just today, the benchmark Treasury bond ETF (511100) was listed!

In the downturn of the ** issuance,The ** initial offering stage has been subscribed by more than 2 billion funds!(Data**: Establishment Announcement, 2023 12 14).

The Company has converted the shares of this ** with December 14, 2023 as the **share conversion date. The total number of shares before conversion is 2,023,050,444, and the total number of shares after conversion is 20,230,504. Shares of the listing: 20,230,504. **Net share value as of December 18, 2023: 1000318 yuan (after share conversion).

What are the characteristics of this **?What is the allocation value of the benchmark Treasury ETF?

High-quality indexes, with a precise focus on treasury bond investmentAs we all know, treasury bonds are a kind of bonds issued by the government to raise financial funds, and ETFs that invest in treasury bonds are treasury bond ETFs.

Since the national debt hasHigh creditworthiness, good liquidity, tax incentives, and a yield slightly higher than the bank deposit interest rate of the same maturityTreasury ETFs provide investors with a low-risk way to invest. In addition, compared with the fixed-term treasury bond cash bonds will eventually expire, the treasury bond ETF is regularly adjusted by a professional ** manager, which can ensure the duration and activity of the treasury bonds held, and there is no duration.

Benchmark Treasury ETFs are primarily focused on a specific market segment of TreasuriesIt is also the industry's first product linked to the Shanghai Market-making Treasury Bond Index, which adopts a variety of investment strategies and closely tracks the Shanghai Stock Exchange benchmark market-making treasury bond index, striving to continue to build a long-term stable investment portfolio.

The SSE Benchmark Market-Making Treasury Bond Index mainly selects all treasury bonds within the list of benchmark market-making varieties of the Shanghai Stock Exchange as constituent bonds, and specifically selects the two newly listed bonds from the treasury bonds with maturities of 1 year, 2 years, 3 years, 5 years, 10 years, and 30 years, and the index is adjusted regularly once a month. Since the base date (June 30, 2022 - November 9, 2023), the annualized return of the SSE benchmark market-making treasury bond index has been 281% (After deducting management fees and custody fees, the product income is about 2.)61%), with a year-to-date gain of 323%, maximum drawdown -081%。

Chart of the Shanghai Benchmark Treasury Bond Index

Data**: WIND, SSE, data as of November 23, 2023.

At present, the number of constituent coupons is 14All of them are key maturity treasury bonds, covering short, medium, long and ultra-long maturity treasury bonds, with an overall duration of 5 years, and a comprehensive medium-term treasury bond index。The market capitalization of the underlying index constituents is as high as 34 trillion, mainly in the interbank market, but all treasury bonds can be transferred to the exchange for listing.

Data**: Wind, SSE, as of the end of October 2023, the above bonds do not constitute investment advice.

Multiple advantages to meet the needs of precise configurationAs a comprehensive medium-term treasury bond index, the benchmark treasury bond index ETF not only has the characteristics of treasury bond ETF, but also has other multiple advantages:

It greatly reduces the investment threshold of bonds, with low management fees and high creditworthiness

The index regularly adjusts its positions every month to realize the exchange of new and old bonds, eliminating the cumbersome operation of investors to choose and exchange bonds by themselves.

It supports T+0 capital reversal, and at the same time, bond ETFs have been included in the scope of use of securities lending and selling funds, and treasury bond ETFs have entered the general repo pledge library, which has improved the efficiency of capital use.

The characteristics and style of the underlying bonds of the product are clear, which can diversify the risk of bond adjustment of different maturities due to liquidity risk and fundamental risk. The style is stable, the position is transparent, and it meets the requirements of the new capital regulations.

At the same time, the benchmark market-making bond business is an important measure for the CSRC and the exchange to promote the high-quality development of the exchange bond market. As an innovative product, benchmark treasury bond ETFs provide a richer and more convenient way to invest in treasury bonds, which is conducive to promoting the high-quality development of the exchange bond market and is supported by favorable policies from various parties.

The space is vast, and the layout is efficiently configuredAs of November 9, 2023, the total size of bond ETFs was 65.7 billion yuan, an increase of 12.8 billion yuan from last year. As the advantages of ETF trading are gradually recognized and accepted by the market, domestic bond ETFs will usher in a broad space for development (data**: wind).

Especially in the low-interest rate market environment, investors' demand for asset allocation of stable instrumental products will continue to increase, and the launch of benchmark treasury bond ETFs provides investors with effective low- and medium-risk underlying assets and stock and bond rotation tools.

Stay tuned for the benchmark Treasury ETF listed today

**Look for 511100!

The base date of the SSE benchmark market-making treasury bond index is June 30, 2022, and the annualized return of the index is 281%, with a year-to-date gain of 323%。Data**: wind, as of 2023 11 9.

Risk Warning:1This ** is a bond type**, its long-term average risk and expected return are lower than *** and hybrid**, higher than the money market**, and belong to the low risk (R2) variety, and the specific risk rating results are subject to the rating results provided by the **manager and the sales agency. The product does not guarantee principal and income, and there is a risk of fluctuation in net value. The ** listed and traded may be subject to liquidity risks, secondary market discount and premium risks and delisting risks. 2.This ** is an index**, and investors investing in this ** face potential risks such as tracking error control not reaching the agreed target, index compilation institutions stopping services, and constituent securities suspending trading. In addition, as an ETF investment, it will also be exposed to the unique risks of this category. 3.This ** mainly invests in the underlying index constituent bonds and alternative constituent bonds, which have similar risk-return characteristics to the underlying index. The ** uses the sampling copying strategy to track the underlying index, and due to factors such as ** fees, transaction costs, differences between the portfolio position and the underlying index constituent bonds, ** valuation methods and the price selection rules of the index constituent bonds, etc., there may be a deviation between the actual rate of return and the index rate of return. 4.Before investing in this company, investors should carefully read the "Contract", "Prospectus" and "Product Key Facts Statement" and other legal documents, fully understand the risk-return characteristics and product characteristics of this company, and fully consider their own risk tolerance according to their own investment objectives, investment period, investment experience, asset status and other factors, and make rational judgments and prudent investment decisions on the basis of understanding the product situation and sales suitability opinions, and independently assume investment risks. 5.The Manager does not guarantee a certain profit, nor does it guarantee a minimum return. The past performance of the ** and its net worth are not indicative of its future performance, and the performance of other ** managed by the **Manager does not constitute a guarantee of the performance of the **. 6.The manager reminds investors of the principle of "buyer's responsibility" in investment, and after investors make investment decisions, investors are responsible for the investment risks caused by fluctuations in operating conditions, share listing and trading, and changes in net value. 7. The registration of this ** by the China Securities Regulatory Commission does not indicate that it has made substantive judgments or guarantees on the investment value, market prospects and returns of this **, nor does it indicate that there is no risk in investing in this **. 8.This product is issued and managed by Huaxia**, and the agency does not assume the responsibility for the investment, redemption and risk management of the product. 9.The views in this material are for reference only and do not constitute any substantive advice or commitment to investors, nor do they serve as any legal documents. The market is risky and investors should be cautious.

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