Samsung Asset Management-BlackRock Launch 3 US Bond ETFs "Stable Investment in High-Interest Rate Environment"

"Bond Appeal Increases with Continued Interest Rates"
"Opportunities Must Be Found in US Bond Investments"

On the morning of the 19th, at the Korea Exchange Conference Hall in Yeouido, Seoul, Lim Tae-hyuk, Executive Director of the ETF Operations Headquarters at Samsung Asset Management (left), Yoo Ah-ran, Manager at Samsung Asset Management, and Darren Wills, Head of BlackRock Asia Pacific ETF and Index Products, who attended the commemorative meeting for the listing of the 'KODEX iShares U.S. Bond ETF 3 types,' are answering questions from the press.

On the 19th, Samsung Asset Management, together with BlackRock, the world's largest asset management company, launched three U.S. bond exchange-traded funds (ETFs) and emphasized the need to seek investment opportunities through relatively stable U.S. high-yield bonds rather than stocks amid the high interest rate environment.

That morning, Samsung Asset Management held a press conference at the Korea Exchange Conference Hall in Yeouido, Seoul, to commemorate the domestic launch of the 'KODEX iShares U.S. Bond ETFs 3 types,' in collaboration with BlackRock's ETF brand iShares.

At the conference, three ETFs were introduced: the 'KODEX iShares U.S. High Yield Active ETF,' 'KODEX iShares U.S. Investment Grade Corporate Bond Active ETF,' and 'KODEX iShares U.S. Inflation-Protected Treasury Active ETF,' each investing in BlackRock's representative U.S. bond ETFs USHY, LQD, and TIP respectively through a one-to-one fund of funds structure.

Park Myung-je, CEO of BlackRock Asset Management Korea, said, "We are very pleased to collaborate with Samsung Asset Management Kodex, which represents the Korean ETF market," adding, "We hope that the listing of these three Kodex iShares ETFs will serve as an opportunity to expand bond ETF investments in the Korean market."

Darren Wills, Head of BlackRock Asia-Pacific ETF and Index Products, presented the outlook for the global bond market and the expected performance of U.S. bond ETF investments in domestic and international markets going forward.

He explained, "Recent significant shifts in bond market interest rates have sharply increased the attractiveness of bond assets. This has enabled broad investments utilizing various maturity ranges. In particular, the yield on U.S. high-yield bond assets shows higher investment appeal compared to the dividend yields of U.S. high-dividend stocks or REITs. The Federal Reserve's (Fed) high interest rate policy is expected to be maintained longer than previously anticipated, so this relative attractiveness of bond investments will continue for the time being."

He added, "Bond ETFs are the fastest-growing sector in the financial market. Since the first bond ETF was introduced in 2002, the international bond ETF market grew to $1.79 trillion USD (approximately 2,428.135 trillion KRW) last year, marking 20 years. The convenience of bond ETF investments and the diversity of products have positively contributed, and it is expected to grow to $6 trillion USD by 2030."

Furthermore, "although it was previously a difficult area for general investors to access, individual stock risk has decreased and investment costs have been reduced. Monthly dividend payments, similar to stocks, are also possible. Transparency has been secured through exchange listings," he added.

Yu Ah-ran, manager at Samsung Asset Management, said, "The utility of bond investments has increased in the new market environment, and we are now able to offer this product to domestic investors who prefer stable investments," adding, "We especially hope that pension investors can manage their valuable retirement assets stably through pension accounts."

Im Tae-hyuk, Executive Director of Samsung Asset Management's ETF Management Division, emphasized, "By combining the professional management know-how of the world's top asset manager with Korea's number one Kodex expertise, we have supplied newer and superior products to domestic investors," adding, "This will become a new investment alternative in the domestic monthly dividend ETF market and provide solutions that help investors in terms of investment convenience and cost efficiency."

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