KB Asset Management Launches Additional Maturity Bond ETFs

On the 17th, KB Asset Management launched the ‘KBSTAR 25-03 Corporate Bond (AA- or higher) Active ETF.’

Renowned as a leader in bond ETFs, KB Asset Management operates the most diverse range of bond ETFs (26 types) listed domestically.

By investing in KB Asset Management’s bond ETFs, individuals can select products that match their risk tolerance, investment objectives, and market conditions, enabling directional investments during both rising and falling interest rate environments.

KB Asset Management continues to strengthen its lineup of bond ETFs for investors interested in bonds.

Following the industry-first listing of the 30-year government bond leveraged product ‘KBSTAR 30-Year Government Bond Leverage KAP (Synthetic) ETF’ in February this year, KB Asset Management launched the ‘KBSTAR Money Market Active ETF’ targeting the MMF market in May.

The newly launched ‘KBSTAR 25-03 Corporate Bond (AA- or higher) Active ETF’ is the third maturity bond ETF following the ‘23-11 Corporate Bond (AA- or higher)’ and ‘25-11 Corporate Bond (AA- or higher)’ ETFs released in November last year.

Maturity bond ETFs differ from traditional bond ETFs in that each product has a fixed maturity date.

Even if interest rates rise, holding the ETF until maturity allows investors to achieve the initially expected performance (yield to maturity), while if interest rates fall, capital gains can be pursued through trading.

The maturity date of the ‘KBSTAR 25-03 Corporate Bond (AA- or higher) Active ETF’ is March 2025.

It diversifies investments in high-quality domestic corporate bonds rated AA- or higher and seeks stability through a maturity matching strategy.

As of the launch date, an annual yield to maturity (before fees) of approximately 4% is expected, and given the recent rise in interest rates, performance exceeding that of regular time deposits is anticipated.

Additionally, it is a ‘monthly distribution ETF,’ and among maturity bond ETFs available in the market, KB Asset Management’s ETF is the only one offering monthly distributions.

Geum Jeong-seop, Head of ETF Marketing at KB Asset Management, stated, “Holding a maturity bond ETF until maturity allows investors to achieve expected returns regardless of market interest rate fluctuations, with the added advantage of being able to sell during the investment period.” He added, “Investing through individual retirement pension accounts (IRP), defined contribution (DC) pension accounts, or pension savings accounts can also provide tax benefits.”

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