Korea Exchange to Announce Two Indices Including 'KRX REITs Top 10 Index' on the 23rd

[Image source=Yonhap News]

[Asia Economy Reporter Myung-hwan Lee] Korea Exchange (KRX) will announce the KRX index composed of Real Estate Investment Trust (REITs) stocks.

KRX announced on the 18th that it plans to release the "KRX REITs TOP 10 Index," composed of REITs listed on the exchange, and the strategic index of this index, the "KRX REITs TOP 10 Leverage Index," on the 23rd.

REITs offer the advantage of low price volatility and high dividend yields, enabling stable returns even during stock price declines. Recently, they have achieved higher returns than the market's representative index, the KOSPI 200.

The KRX REITs TOP 10 Index is calculated by weighting the top 10 REITs by market capitalization listed on the KOSPI market by their free-float market capitalization. The components include ▲ ESR Kendall Square REIT ▲ JR Global REIT ▲ Lotte REIT ▲ Koramco Energy REIT ▲ SK REIT ▲ Shinhan Alpha REIT ▲ D&D Platform REIT ▲ NH All One REIT ▲ iREIT KOREA ▲ Shinhan Seobu T&D REIT.

Cumulative Return Graph by REITs Index (2021 to End of April 2022)

The KRX REITs TOP 10 Leverage Index reflects an investment strategy that tracks twice the return of the original KRX REITs TOP 10 Index. By purchasing one portfolio and borrowing one portfolio, it tracks twice the daily return, but the index value is calculated by deducting borrowing costs from the portfolio returns. Due to the leverage effect, this index shows superior performance compared to the original index when the index rises, but losses also increase in the opposite case.

An exchange official stated, "With the listing of index products such as Exchange Traded Notes (ETNs) based on REITs as underlying assets, it is expected to meet investor demand for REIT products and contribute to the activation of the listed REIT market."

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