Mirae Asset Daewoo Lists 'Gold Spot Loss-Limiting ETN'... Tradable in Retirement Pension Accounts

[Asia Economy Reporter Song Hwajeong] Mirae Asset Daewoo announced on the 14th that it will list the ‘KRX Gold Spot Loss-Limited Exchange Traded Note (ETN)’ on the Korea Exchange on the 15th, which can be traded through retirement pension accounts in response to the recently increased demand for gold investment.

This ETN is a product based on the price of gold spot (1kg) listed on the KRX gold market and tracks the return of the KRX Gold Spot Index at a 1x multiple. It is also a product that limits the maximum loss to -30%. Even if the KRX Gold Spot Index falls more than 30% from the initial reference price at maturity, the ETN redemption price cannot fall below 7,000 KRW (before deducting fees). Additionally, if the price falls more than 20% from the initial reference price at the end of each trading day, the ETN is automatically redeemed to prevent further losses in case of a sharp decline in the underlying asset.

In particular, existing gold ETF and ETN products are either principal-unprotected derivative-linked securities (including ETNs) or ETFs with more than 40% derivative exposure, making them ineligible for inclusion in retirement pension accounts. However, the newly listed ‘Mirae Asset KRX Gold Spot Auto KO-C 2312-01 ETN’ is issued as a loss-limited product, allowing trading through retirement pension accounts. Trading through retirement pension accounts offers tax benefits such as tax deductions during year-end tax settlement and tax deferral until pension receipt.

A Mirae Asset Daewoo official stated, “We are developing various products such as loss-limited short option ETNs and range-bound equity-linked bonds (ELBs) to diversify retirement pension portfolios. This ETN has lower fees compared to gold spot ETN products from other securities firms and has an automatic early redemption feature that allows proactive response to market shocks, which is advantageous.”

This product can be traded like regular stocks using the Mirae Asset Daewoo retirement pension website and Home Trading System (HTS) after the listing date.

Inquiries regarding ETN trading and online transaction methods can be made through the Mirae Asset Daewoo customer center.

ETN products may result in principal loss, and this product may incur losses up to -30% (based on the issue price before deducting fees).

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