Meritz Securities Launches 3 New ETNs Investing in Short-Term Monetary Stabilization Bonds

Meritz Securities (CEO Choi Hee-moon) announced on the 18th that it expanded its lineup of short-term bond ETN products by listing three ETNs that invest in short-term Monetary Stabilization Bonds (Monetary Stabilization Bonds) on the Korea Exchange on the 17th, following its government bond ETNs.

The listed products are ▲Meritz KAP Monetary Stabilization Bond 3-month ETN ▲Meritz KAP Monetary Stabilization Bond 6-month ETN ▲Meritz KIS Monetary Stabilization Bond 1-year ETN, each based on three bonds issued by the Bank of Korea with remaining maturities of approximately 3 months, 6 months, and 1 year, respectively. The underlying indices are calculated by KAP Korea Asset Valuation and KIS Asset Valuation, and the composition of the underlying assets is restructured monthly to match the maturity of each product.

At the end of last year, Meritz Securities completed a government bond ETN lineup that allows investment in government bonds with maturities ranging from 3 to 30 years in the desired direction by maturity, uniquely in the industry. While those products allowed investment in relatively long-term government bonds in various ways, the Monetary Stabilization Bond ETNs aim to pursue stable interest income by using Monetary Stabilization Bonds, a representative safe asset of short-term bonds, as the underlying assets. With this listing, the total number of products investing in short-term interest rates within one year, including the ‘Meritz KIS CD Interest Rate Investment ETN’ launched in April, has increased to four.

Kwon Dong-chan, Executive Director of Meritz Securities Trading Headquarters, said, “Existing Meritz bond-type ETNs were optimized products for active government bond trading and efficient asset allocation,” adding, “The newly listed Meritz Monetary Stabilization Bond ETNs are suitable for those seeking to manage short-term funds stably and have set the lowest fee rates in the industry among Monetary Stabilization Bond-related ETP products.”

Since Monetary Stabilization Bonds track short-term interest rates with low price volatility, the total fees for these products are also relatively low, ranging from 0.03% to 0.05% per annum. Detailed information such as the investment prospectus and underlying index descriptions can be found on the dedicated Meritz Securities ETN website. Meritz Securities plans to continuously provide trading and asset allocation strategies using bond-type ETNs through its official YouTube channel ‘Meritz On’ in the future.

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