What Is a Short-Term Bond ETF?

Bond ETF refers to the ETF that uses the bond index as the tracking target. According to the operation mode of bond ETF, it can be divided into single market physical bond ETF and cash bond ETF. A single market physical bond ETF refers to an ETF whose constituent securities of the tracked bond index are bonds listed on the Shenzhen Stock Exchange, and investors use bond portfolios to purchase and redeem them. A cash bond ETF refers to an ETF that tracks bond indexes and is redeemed by investors using full cash purchases. For example, the Shenzhen Stock Exchange's first bond ETF, the Harvest Medium-Term Treasury Bond ETF, tracks the CSI Phnom Penh Medium-Term Treasury Bond Index. It mainly invests in government bonds with a remaining maturity of 4-7 years. It can use physical and cash substitutes and fund contracts and recruitment. Purchasing and redemption in other ways stipulated in the prospectus, and listing and trading on the Shenzhen Stock Exchange.

Bond ETF

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Bond ETF refers to the ETF that uses the bond index as the tracking target. According to the operation mode of bond ETF, it can be divided into single market physical bond ETF and cash bond ETF. A single market physical bond ETF refers to an ETF whose constituent securities of the tracked bond index are bonds listed on the Shenzhen Stock Exchange, and investors use bond portfolios to purchase and redeem them. A cash bond ETF refers to an ETF that tracks bond indexes and is redeemed by investors using full cash purchases. For example, the Shenzhen Stock Exchange's first bond ETF, the Harvest Medium-Term Treasury Bond ETF, tracks the CSI Phnom Penh Medium-Term Treasury Bond Index. It mainly invests in government bonds with a remaining maturity of 4-7 years. It can use physical and cash substitutes and fund contracts and recruitment. Purchasing and redemption in other ways stipulated in the prospectus, and listing and trading on the Shenzhen Stock Exchange.

Low management fees.

1. Investors purchase, redeem, and trade ETFs for physical bonds in the market, such as Jiashi Interim

1. Bond ETF net value fluctuation risk. The constituent bonds of a bond ETF may fluctuate under the influence of various factors, thereby causing fluctuations in the net asset value of the bond ETF and generating potential investment risks.

2. The risk that the bond ETF portfolio returns deviate from the underlying index returns. This comes from some special factors in the investment operation of bond ETFs, such as: (1) the fund uses a representative stratified sampling and replication strategy, the composition of the fund's investment portfolio and the underlying index may differ; (2) the compilation of the full price index, and the calculation of bonds Interest reinvestment income, and the fund may not be able to obtain the same rate of return in reinvestment; (3) Investors' purchases and redemptions will bring certain cash flows or realisation needs. When the bond market lacks liquidity, it may suffer Restrictions on the starting point of bond trading in the inter-bank bond market, the fund portfolio will have cash drag, or encounter a certain realization loss in the realization of cash; (4) deviations caused by other factors, such as the difference between the valuation of the fund and the index component bond pricing, minimum purchase Restrictions on the number of entries, etc., may cause the holding ratio of individual bonds in the fund's investment portfolio to be different from the bond weight in the underlying index, etc.

3. Risk of price deviation from net worth. Although the bond ETF has a certain arbitrage mechanism to make its trading price and net value tend to be consistent, the fund's trading price will be affected by factors such as market supply and demand, and there may be a short-term deviation from the fund's net value, that is, discount premium risk.

4. Risk of investor's failed purchase or redemption. At the time of purchase, if the investor fails to provide the required purchase consideration, the application for the purchase may fail; at the time of redemption, if the investor holds insufficient funds or fails to prepare sufficient cash as required, or the fund invests The portfolio does not have sufficient redemption consideration, and the redemption application may fail.