Meritz Securities, Korea's First 3X Leverage Government Bond ETN Newly Listed

[Asia Economy Reporter Jang Hyowon] Meritz Securities (CEO Choi Heemun) announced on the 21st that it will list bond-type ETNs with 3x leverage investment capability for the first time in the domestic ETP (ETF, ETN) market on the Korea Exchange.

The listed products total 8 items: ▲Meritz 3X Leverage Treasury 3-Year ETN ▲Meritz Inverse 3X Treasury 3-Year ETN ▲Meritz 3X Leverage Treasury 5-Year ETN ▲Meritz Inverse 3X Treasury 5-Year ETN ▲Meritz 3X Leverage Treasury 10-Year ETN ▲Meritz Inverse 3X Treasury 10-Year ETN ▲Meritz 3X Leverage Treasury 30-Year ETN ▲Meritz Inverse 3X Treasury 30-Year ETN.

This is the first product launched since the Korea Exchange allowed the listing of products with 3x leverage investment only for ETNs based on bonds last October.

With the rapid base interest rate hikes this year, investors' interest in bond-type products is gradually increasing. The company has already listed various ETN products that allow investment in 3-year, 5-year, 10-year, and 30-year government bonds with 1x, 2x, and inverse methods.

With this 3x leverage ETN listing, Meritz Securities has completed the industry's first government bond ETN lineup that allows investment by desired method across maturities from 5-year short-term to 30-year ultra-long-term bonds. Currently, Meritz Securities operates 28 bond-type ETN products, the largest number among securities firms and asset managers combined, and with this 3x leverage ETN listing, it will operate a total of 36 products.

Kwon Dongchan, Executive Director of Meritz Securities Trading Headquarters, said, "Government bonds are representative safe assets with relatively low price volatility compared to other financial assets, so even with 3x leverage investment, the volatility level is similar to or lower than that of commodities and stocks. By providing individual investors with leveraged bond products at the institutional investor level, we can satisfy diverse demands of individual investors and utilize them for asset allocation strategies such as constructing portfolios with equal volatility."

Meritz Securities plans to continuously provide trading and asset allocation strategies using government bond ETNs through its official YouTube channel ‘Meritz On’. Detailed information on each product and the underlying indices can be found on the Meritz Securities website or the KAP website, which calculates the underlying indices.

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