Samsung Asset Management KODEX CD Interest Rate Active Surpasses 5 Trillion KRW in Net Assets

Samsung Asset Management announced on the 29th that the KODEX CD Interest Rate Active Exchange-Traded Fund (ETF) surpassed 5 trillion KRW in net assets as of the previous day. This increase in buying activity is due to investors taking a wait-and-see approach amid high volatility after the KOSPI index, which formed a short-term bottom last month, recently reached the 2500 level.

Since its listing in June, this product recorded net assets of 5.0857 trillion KRW as of the previous day, achieving the fastest-ever milestone of surpassing 5 trillion KRW. This placed it third in net asset size among all ETFs. Over the past week, individual investors net purchased 19 billion KRW of KODEX CD Interest Rate Active, making it the most bought ETF, surpassing semiconductor, long-term bond, and monthly dividend ETFs. Over the past month, individuals net purchased more than 44 billion KRW, marking the highest net purchase among general ETFs.

Since listing, the cumulative net purchase by individual investors has reached approximately 214 billion KRW. During the same period, it holds the highest cumulative net purchase record among all bond and interest rate ETFs. This amount is about 1.95 times larger than the combined total of other parking-type ETF products.

This product calculates the daily interest rate level of the 91-day CD on a pro-rata basis and applies it daily with compound interest. Even investing for just one day allows investors to earn the daily interest rate level of the 91-day CD. Unlike other CD interest rate ETFs that underperform the underlying CD interest rate index, it consistently records yield performances at the level of the 91-day CD, such as 3.60% annualized for one month and 3.72% annualized for three months. It also boasts the lowest total expense ratio of 0.02% per annum among parking-type ETFs. Although its price per share is the highest at 1,018,492 KRW, it applies the same 5 KRW bid-ask spread as other ETFs, resulting in lower actual trading costs.

Im Tae-hyuk, Executive Director of the ETF Management Division at Samsung Asset Management, stated, "Surpassing 5 trillion KRW in net assets in the shortest period ever, it is rapidly growing as a representative parking-type ETF ranked third among all ETFs. The great appeal lies in its design and management, which allows investors to realize CD interest rate-level returns with the industry's lowest fee of 0.02% annually, even if they invest for just one day at any time."

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