The innovative fixed income ETF - HBL Total Treasury ETF

Published On: October 01, 2023

The HBL Total Treasury Exchange Traded Fund (HBLTT-ETF) is a first of its kind of Exchange Traded Funds (ETF) to be listed on Pakistan Stock Exchange (PSX). The ETF, launched by HBL AMC, consists of a blend of Government Debt Securities (GDS) as the underlying asset class. This security is structured in the ETF form so investors can easily invest in a diversified pool of fixed income GDS.​

The HBL Total Treasury ETF’s underlying assets consist of cash and cash equivalent, Treasury Bills (T-Bills), and Pakistan Investment Bonds (PIBs). Specifically, the ETF invests in a particular basket comprising of Government of Pakistan Securities, Treasury Bills up to 1-year maturity and Pakistan Investment Bonds of up to 10 years maturity as well as cash and cash equivalents.

It is an open-ended fixed income ETF which tracks its benchmark index, the HBL Total Treasury Index (HBL TTI). It is a perpetual fund whereby the units of the fund are to be bought and sold throughout the trading day like shares of other publicly traded companies. The closing NAV and the index performance of the ETF is available on PSX as well as the AMC websites for the benefit of investors.

Investing in government securities is now as simple as investing in shares at PSX. By purchasing unit(s) of HBL Total Treasury ETF, investors are investing in a diversified pool of fixed income GDS by doing a single trade through their brokers on the Ready Counter of the Exchange. Investing in Government Debt Securities through this low-cost ETF may be an optimum way forward for investors who prefer taking exposure in different asset classes and investment strategies including fixed income instruments and related securities. At the prevailing rates of return, investing in government securities is an attractive option and investors must avail this option of conveniently investing in government securities through the HBL Total Treasury ETF.

Disclaimer:

The contents of this article/ blog comprising of information pertaining to financial products, including but not limited to securities, derivatives products, listed companies or companies proposed to be listed on PSX and any content of third parties are strictly of a general nature and are provided for informative and educational purposes only. Such content/ information is not intended to provide trading or investment advice of any form or kind and shall not under any circumstances be construed as providing any recommendation, opinion or indication by PSX as to the merits of the said product, security or company and also not be interpreted as comprehensive and interpretive of all applicable regulatory provisions