By Uzma Zafar
ISLAMABAD: In line with its objectives of creating a competitive and conducive playing field and to diversify the range of ETFs available to investors, the Securities and Exchange Commission of Pakistan (SECP) has specified the framework for issuance of Debt and Hybrid Exchange Traded Funds (D&H ETFs) through Circular No 20 of 2021.
The circular also updates the existing framework for Equity ETFs, said a press release issued here.
Just like equity ETFs, the debt ETFs are also passively managed and trade on a regular exchange. Debt ETFs allow ordinary investors to gain passive exposure to fixed income securities such as corporate bonds or Treasuries in an inexpensive way, while Hybrid ETFs allow investment in an index which has both debt and equity securities. Investment in debt ETFs is well suited for investors with a low risk profile, as it provides a strong defensive addition to their investment portfolios.
