"Preparing for Agflation"… Meritz Securities Launches 3 Agricultural Commodity Index-Tracking ETNs

[Asia Economy Reporter Ji Yeon-jin] Meritz Securities (CEO Choi Hee-moon) announced on the 15th that it will launch three exchange-traded notes (ETNs) tracking a representative agricultural commodity index for the first time in the domestic market on the 16th.

In the domestic ETN market, Meritz Securities ETNs are the only products that invest in an index representing the entire agricultural commodity market rather than individual agricultural commodity items. It is the first in the exchange-traded product market, including exchange-traded funds, to allow investment using leverage and inverse 2X methods.

The products are ▲Meritz Representative Agricultural Commodity Futures ETN(H), ▲Meritz Leverage Representative Agricultural Commodity Futures ETN(H), and ▲Meritz Inverse 2X Representative Agricultural Commodity Futures ETN(H), totaling three items, and they implement currency hedging to enable investment without exchange rate fluctuation risk.

All of Meritz Securities' representative agricultural commodity ETN products track the "Bloomberg Representative Agricultural Commodity Index" calculated by Bloomberg. At the beginning of each year, the three largest agricultural commodities are selected considering the market harvest volume and trading volume, and the underlying index items and weights are determined.

Kwon Dong-chan, Head of Trading at Meritz Securities, said, "Interest in agricultural commodity prices is increasing recently due to climate change and rapid energy price fluctuations," adding, "We devised products that allow investors to invest in the representative index with various directions and multiples without worrying about individual agricultural commodity items." He also added, "It will also be possible to prepare for concerns about agflation caused by soaring grain prices recently."

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