ETN's Sales Increase by 10% This Year Due to Soaring Raw Material Prices

[Asia Economy Reporter Lee Jung-yoon] This year, as prices of crude oil and other raw materials have surged, investors are flocking to exchange-traded notes (ETNs).

According to the Korea Exchange on the 27th, the sales amount of ETNs listed on the domestic stock market reached 595 billion KRW as of the 25th, an increase of 10.2% (55 billion KRW) compared to 540 billion KRW at the end of last year.

The sales amount is calculated by applying the current stock price to the number of sales shares, which is the total number of ETN listed shares minus the quantity held by liquidity providers (LPs), representing the actual amount of ETNs held by investors. ETNs refer to derivative-linked securities where securities companies promise to pay investors returns linked to an underlying index. When the issuer sets the number of shares to be issued and lists the ETNs on the exchange, investors trade by purchasing them.

The proportion of sales shares relative to the total ETN listed shares also rose from 15.06% at the end of last year to 23.88% on the 25th, indicating an increase in the proportion of ETNs held by investors among all ETNs.

The increase in ETN investment appears to be driven by the strong performance of raw material prices this year. By underlying asset, ETN sales amounts investing in raw materials increased the most, rising from 381.8 billion KRW at the end of last year to 458.1 billion KRW on the 25th, an increase of 76.3 billion KRW (20.0%).

In particular, as crude oil and natural gas prices rose, related investment demand increased. Among the sales increases by product this year, crude oil investment ETNs such as 'Samsung Inverse 2X WTI Crude Oil Futures ETN' (33 billion KRW) and 'Daishin WTI Crude Oil Futures ETN(H)' (8.3 billion KRW), along with natural gas-related ETNs like 'Samsung Inverse 2X Natural Gas Futures ETN B' (3.7 billion KRW) and 'TRUE Leverage Natural Gas Futures ETN(H)' (2.3 billion KRW), ranked high.

Regarding this year's rate of change, crude oil and natural gas-related ETNs such as 'Samsung Leverage WTI Crude Oil Futures ETN' (58.41%), 'Shinhan Leverage WTI Crude Oil Futures ETN(H)' (58.33%), and 'Samsung Leverage Natural Gas Futures ETN B' (48.90%) occupied the top ranks.

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