'KODEX KOFR Interest Active ETF' Surpasses 2 Trillion KRW in Net Assets Just 4 Months After Listing
[Asia Economy Reporter Hwang Yoon-joo] Samsung Asset Management's 'KODEX KOFR Interest Rate Active ETF' has surpassed 2 trillion KRW in net assets.
On the 6th, Samsung Asset Management announced that the net assets of the KODEX KOFR Interest Rate Active ETF reached 2.03 trillion KRW.
This marks the shortest period record in Korea, as it surpassed 2 trillion KRW in net assets about four months after its listing on April 26. It is the sixth largest among a total of 611 ETFs.
Among ETFs larger than the Samsung KODEX KOFR Interest Rate Active ETF, except for the KODEX200 ETF (5.27 trillion KRW) and TIGER China Electric Vehicle ETF (3.35 trillion KRW), the rest have net assets in the low 2 trillion KRW range, so it is expected to enter the ‘Big 3’ soon.
The rapid growth of the Samsung KODEX KOFR Interest Rate Active ETF in a short period is due to institutions trading large-scale short-term funds both on and off the market, as well as a significant increase in retail investors’ on-market investments.
The KODEX KOFR Interest Rate Active ETF is easy to set up and redeem even off-market, and is suitable for liquidity management, resulting in very high participation rates from institutional investors.
In addition, the product’s characteristic of tracking the risk-free benchmark interest rate has attracted attention because there has been no loss since its listing, leading to a sharp increase in retail investors’ on-market trading recently.
On the 1st, the daily net purchase amount by individuals reached 13.7 billion KRW, and the one-month net purchase increased to 28.7 billion KRW, with the cumulative monthly individual trading volume reaching about 260 billion KRW. Amid the ongoing interest rate rise and uncertain market direction, it seems to be recognized as a tailored product for retail investors who want to ‘park’ their funds temporarily.
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Meanwhile, the Samsung KODEX KOFR Interest Rate Active ETF is the only domestic ETF that tracks the return of the Korea Overnight Financing Rate (KOFR) index. KOFR is the overnight government bond and Monetary Stabilization Bond collateralized rate calculated since November last year under the leadership of the Financial Services Commission. This ETF’s returns increase as interest rates rise, since daily interest income grows.
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