NH-Amundi Asset Management Launches 10-Year Maturity Bond ETF

[Asia Economy Reporter Hwang Yoon-joo] NH-Amundi Asset Management announced that it will list the HANARO 32-10 Treasury Bond Active Exchange-Traded Fund (ETF), composed of 10-year maturity bonds, on November 22.

This ETF is a product that diversifies investment in bonds with maturities. The ETF is automatically delisted upon maturity, which differs from conventional bond ETFs without maturities. It is expected to provide capital gains when interest rates decline and interest income if held until maturity even when interest rates rise.

The HANARO 32-10 Treasury Bond Active ETF is a 10-year maturity bond-type ETF that seeks stable returns through a long-term treasury bond holding strategy. It is composed of 100% treasury bonds, reducing credit risk to a ‘Zero’ level. The benchmark index tracks the KAP 32-10 Treasury Bond 10-Year Total Return Index and consists of 95% treasury bonds and 5% call bonds.

Among treasury bonds maturing after November 2032, the ETF includes those with shorter remaining maturities in order, while restricting stock-related bonds and treasury bonds with issuance balances under 50 billion KRW to minimize credit risk. It is suitable for investors who need to maintain high duration or follow benchmarks that include long-term segments.

This product emphasizes profitability, stability, and usability as investment points. By holding 10-year maturity bonds long-term, it aims to generate stable returns and pursues stability by being composed of 100% treasury bonds. It also offers convenience by allowing investors to trade bonds with maturities in the stock market in real time at approximately 50,000 KRW per share.

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