Launch of 'KOSPI200 10-Year Government Bond Futures Composite Index' Considering Low Interest Rate Trend

Targeting Mid-Risk Investors... Enhancing Both Profitability and Stability

Provided by Korea Exchange

[Asia Economy Reporter Minwoo Lee] A 'KOSPI200 10-Year Treasury Futures Mixed Index' that complements stability and profitability in preparation for the low-interest-rate trend will be launched.

The Korea Exchange announced on the 18th that this product will be launched starting from the 23rd. The product seeks a leverage effect where the total return is 1.5 times the return of the underlying assets. It reflects 100% of the 10-year Treasury futures return and 50% of the KOSPI200 futures return, respectively.

The exchange explained, "As the recent low-interest-rate trend continues, the proportion of 10-year Treasury futures, which have lower volatility but are expected to rise in price more than stocks in the future, has been increased," adding, "Both stability and profitability can be expected."

The existing stock-bond mixed index allocated assets as 70% stocks and 30% bonds for the stock type, and 30% stocks and 70% bonds for the bond type. The new product's average annual return from 2011 to recently was 6.60%. This was higher than the KOSPI200 futures (0.52%), 10-year Treasury futures (3.77%), stock-type stock-bond mixed index (1.86%), and bond-type stock-bond mixed index (2.83%) during the same period.

A Korea Exchange official said, "In an investment environment with increased volatility, this product, which maintains the diversification effect and improves profitability, will meet the demand of medium-risk investors."

This content was produced with the assistance of AI translation services.