What does ETF mean?
The full name of government financial bonds is policy financial bonds, which are issued by China Development Bank, China Agricultural Development Bank and The Export-Import Bank of China, guaranteed by the central government, and are also called "quasi-national bonds" by investors. Policy financial bond ETF is an innovative product of fund industry in the field of bond ETF, which is oriented to investors. Securities and bond ETF is a relatively stable investment target because of its convenient transaction, low cost, high transparency and relatively low credit risk.
Specifically, the first batch of domestic securities bond ETFs include the following eight, namely: China Merchants Securities Policy Financial Bond ETF for 3-5 years, Guangfa China Bond Agricultural Bond ETF, Guo Fu China Bond ETF for 7-10 years, Jianxin China Bond ETF for 7-10 years, Guotai China Bond ETF 7- 10/-3 years, and Huaan China Bond ETF.
Through the product names, it can be clear that there are many kinds of newly-launched treasury bonds, including short-term 0-3 years, 1-3 years, 1-5 years, and longer-term varieties such as 3-5 years and 7- 10 years, which can meet investors' more diversified capital allocation needs.
It is worth noting that in the past, ordinary policy financial bond index funds were redeemed in different places by cash, which generally took T+3 or longer to arrive. The policy financial bond ETF can be redeemed in cash or listed and traded. Funds can also be received as soon as possible on the day of sale, which is more flexible.
In short, for investors, this time, the ETF of financial bonds is a low-risk product listed and traded, and investors have more choices of bond tools. However, investors still need to read the product manual carefully before investing to understand the product risks and see if they are within their tolerance.