What is an ETF?
Exchange Traded Funds are type of mutual funds which are listed and traded on exchange.
These ETFs track an underlying index and are passively managed. Similar to other Mutual Fund,
investors get units of ETFs which are listed and trade on the Exchange. Investors can buy or sell
units of ETF on the exchange any time during the market hours.
What are Equity ETFs?
Equity ETFs invest in a basket of company stocks (also known as equities or shares). They are the
most common type of ETFs and enable you to own part of hundreds or even thousands of
companies in a single trade.
What are Debt ETFs?
Total Treasury ETFs invest in Government Securities and are listed on exchange. These Funds are
passively managed and follow a specific Index.
How to invest in an ETF?
ETFs are bought and sold in the stock market through a stock broker of the Pakistan Stock
Exchange
Does CGT apply on ETF?
Capital gain arising from sale / disposal of ETFs in the secondary market will be subject to tax at
the applicable tax rate as mentioned in Income Tax Ordinance 2001 and shall be computed,
determined and collected by the National Clearing Company of Pakistan Limited (NCCPL).
Refer to your Tax Advisor for further information.
Are ETFs high risk?
Investing in ETF is same as investing in stocks/bonds and are subject to the same ups and downs of the
market. The performance of ETF may be directly affected by the performance of its component of the
basket. However, being diversified instruments, the risk in investing in ETF should be lower than that of
investing in a single stock.
Do ETFs have fees? What is the FEL or Management fee for ETF?
ETFs are traded in secondary market (Stock Exchange) and no front end load is charged. However
brokerage management fee are charged by stock brokers and Asset Management Companies
respectively. Please refer to the Offering Document for more details.
Why invest in debt ETFs?
Debt Exchange Traded Funds (ETFs) are simple investment products that allow the investors to
take exposure in fixed income securities. These ETFs combine the benefits of debt investments
with flexibility of trading and simplicity of mutual fund
HBL Total Treasury ETF
HBL Total Treasury ETFs (HBL TETF) invests in Government Securities and is listed on PSX. This
Funds tracks a specific Index referred to as HBL TTI.