KB Asset Management Launches Two New ETFs

ETF Investing in Agriculture-Related Companies
US Short-Term Investment Grade Corporate Bond Active ETF

[Asia Economy Reporter Yoonju Hwang] KB Asset Management newly listed two ETFs (KBSTAR Global Agricultural Economy MV, KBSTAR US Short-Term Investment Grade Corporate Bond) on the 29th.

The 'KBSTAR Global Agricultural Economy MV ETF' is the industry's first product investing in key global agriculture-related companies.

It tracks the Global Agricultural Economy Index and consists of companies with more than 50% of their revenue related to agriculture.

It invests in Deere (7.49%), the global leader in agricultural machinery market share; Zoetis (9.58%), the world's top animal pharmaceutical company; Bayer (7.0%), a pesticide and seed development and production company; Nutrien (6.27%), the world's largest potassium fertilizer company; and Corteva (5.79%), a pesticide manufacturer.

The country allocation is 52% United States, 8% Germany, 6% Canada, and 5% Norway, in that order.

Geum Jeongseop, Director of ETF Marketing at KB Asset Management, explained, "Investing in agriculture-related companies offers the advantage of diversified investment across various companies with a direction similar to agricultural product prices without incurring futures rollover costs."

The 'KBSTAR US Short-Term Investment Grade Corporate Bond Active ETF' invests in US dollar-denominated (USD) corporate bonds rated investment grade or higher.

It invests in bonds rated investment grade or higher according to international credit rating agencies (Moody’s Baa3/S&P BBB-/Fitch BBB-) to minimize credit risk, maintains an average duration of about 2.8 years, and aims to reflect the trends of the US short-term corporate bond market.

The tracking index is the 'Bloomberg US Corporate 1-5 Years TR Index.' This index is composed of about 2,300 USD-denominated corporate bonds traded in the global bond market.

The index reflects not only capital gains and losses from bond investments but also interest reinvestment income. It consists of bonds with remaining maturities of 1 to 5 years, and the average duration of the index is around 2.8 years.

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