Exchange Traded Funds FAQs

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.

Total Treasury ETFs invest in Government Securities and are listed on exchange. These Funds are passively managed and follow a specific Index.

ETFs are bought and sold in the stock market through a stock broker of the Pakistan Stock Exchange

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.

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.

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.

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 ETFs (HBL TETF) invests in Government Securities and is listed on PSX. This Funds tracks a specific Index referred to as HBL TTI.