Mirae Asset Global Investments (Hong Kong) Limited has launched the Global X US Treasury 3-5 Year ETF, which provides investors with convenient access to US treasuries. The fund started trading on the Hong Kong Stock Exchange on Thursday (July 11).

US treasuries, often considered a low-risk asset, have been known for their 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 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.HK), which tracks the Mirae Asset US Treasury 3-5 Year Index, enables Hong Kong investors to trade US treasury bonds during local trading hours.

“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 favourable risk-return profile,” says Xinyi Sun, head of fixed income ETF portfolio management at Mirae Asset.

Mirae Asset now offers a total of 36 ETFs listed in Hong Kong, including five fixed income ETFs, spanning a diverse array of investment capabilities from thematic growth and income to core and commodities.