Meritz Securities, ETN Indicator Market Cap of 1.2 Trillion KRW... Largest Lineup Available

Meritz Securities (CEO Choi Hee-moon) announced on the 20th that the total indicative value of its operating ETN products has grown to 1.2 trillion KRW amid the high growth of the Exchange-Traded Note (ETN) market.

Meritz Securities officially entered the ETN market in June 2021. Since entering the market, it has launched a large number of various domestic first ETN products, holding the largest lineup in the industry with 63 types. In particular, it is focusing on market penetration through relatively stable bond products. Among the 45 bond-type ETNs listed in the ETN market, 39 are ETNs listed by Meritz Securities.

Meritz Securities’ ETNs have a bond-type lineup that ranges from short-term interest rates to inflation-linked bonds, ultra-long-term government bonds, and U.S. Treasury bonds. Each item also includes inverse and leveraged types, making it easy for investors to select suitable items for their portfolios for diversification and risk management.

The ‘Meritz KIS CD Interest Rate Investment ETN,’ which invests in the 91-day negotiable certificate of deposit (CD) interest rate, has attracted increased investor interest in short-term instruments due to the inversion of the short- and long-term interest rate spread, becoming the only single ETN item listed by Meritz Securities to exceed a total indicative value of 300 billion KRW.

In addition, Meritz Securities holds various commodity futures ETNs such as gold, silver, copper, agricultural products, carbon emission rights, and natural gas, allowing investors considering commodity investments beyond typical stock or bond investments to easily invest through Meritz Securities ETNs. Recently, due to global abnormal weather and the aftermath of war causing grain prices to soar, the ‘Meritz Representative Agricultural Products Futures ETN(H)’ has shown high returns.

ETNs are derivative-linked securities that track the returns of underlying indices, similar to Exchange-Traded Funds (ETFs). Unlike ETFs, ETNs are issued by securities companies and have maturity dates. Since they are issued based on the credit of the securities company, issuance is only possible if certain requirements are met. The qualifications for securities companies to issue ETNs include a minimum capital of 500 billion KRW, a net capital ratio of 150%, and a credit rating of AA- or higher. The ETN market is rapidly expanding with the launch of various ETN products including commodities like crude oil and natural gas, as well as representative domestic and international market indices, bonds, and negotiable certificate of deposit (CD) interest rates.

To expand the ETN market, Meritz Securities conducted the ‘ETFN Investment Class’ lecture series on its official YouTube channel for one year from July last year to the end of June. The ‘ETFN Investment Class’ consisted of 15 lectures and recorded approximately 260,000 cumulative views, gaining great popularity.

A Meritz Securities official stated, “As individual investors’ interest in various investments beyond stocks increases, the ETN market is rapidly growing. Meritz Securities will continue to launch various domestic first ETN products and enhance investor accessibility to expand the ETN market.”

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