Meritz Securities ETN YouTube Lecture Surpasses 200,000 Cumulative Views

[Asia Economy Reporter Jang Hyowon] Meritz Securities (CEO Choi Heemun) is focusing on exchange-traded notes (ETNs) to strengthen its retail business.

To expand the ETN market, Meritz Securities is conducting the ‘ETFN Investment Class’ lectures through its official YouTube channel to help individual investors better understand and invest in ETNs. As of the 21st, ‘ETFN Investment Class’ has surpassed 200,000 cumulative views from episodes 1 to 9, gaining great popularity. In ‘Episode 9: Asset Management Using ETFs and ETNs,’ it explains the necessity of asset management strategies not only through stocks but also ETFs and ETNs tailored to individual investors’ investment tendencies.

ETNs are derivative-linked securities that track the returns of an underlying index, similar to exchange-traded funds (ETFs). Unlike ETFs, ETNs are issued by securities companies and have a maturity date. Because they are issued based on the credit of the securities company, certain requirements must be met to issue them. The qualifications for securities companies to issue ETNs include a capital of over 500 billion KRW, a net capital ratio of 150%, and a credit rating of AA- or higher. Recently, the ETN market has been rapidly expanding with the launch of various ETN products, including commodities such as crude oil and natural gas with volatile price fluctuations, as well as representative domestic and international market indices and bonds.

Meritz Securities officially entered the ETN market in June 2021. Since entering the market, it has launched numerous domestic first ETN products, achieving first place in ETN product issuance for two consecutive years with 62 types. It is especially focusing on market penetration through bond-type products. Among the 38 bond-type ETNs listed in the ETN market, 36 of the top 38 are ETNs listed by Meritz Securities. The ‘Meritz 3X Leverage 30-Year Government Bond ETN,’ which was the first 3x leveraged product listed domestically on December 21, 2022, gained great popularity by exceeding a net asset value of 30 billion KRW within just one month.

A Meritz Securities official stated, “As individual investors’ interest in diverse investments increases, ETN sales balances and daily trading volumes are significantly rising. Meritz Securities will continue to launch Korea’s first ETN products and strive to expand the market by improving investors’ accessibility to ETNs through YouTube.”

Meanwhile, the ETN market remains a relatively unfamiliar investment product for individual investors and is smaller in scale compared to the ETF (exchange-traded fund) market managed by asset management companies. As of January 31, ETFs had a total net asset value of 86 trillion KRW, growing at an average annual rate of over 30% since starting with 4 products worth 344.4 billion KRW in 2002. In contrast, exchange-traded notes (ETNs) have a total net asset value of 10.2995 trillion KRW, showing a difference of more than eight times compared to ETFs.

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