Samsung Asset Management, KODEX CD Interest Rate Active... "Individual Net Purchases Surpass 300 Billion Won"

Samsung Asset Management announced on the 4th that the net purchases by individual investors in the KODEX CD Interest Rate Active ETF exceeded 300 billion KRW, reaching 310 billion KRW.

This is analyzed to be due to funds flowing into the CD interest rate-type ETF, which is easy to invest in for the purpose of 'parking' liquidity funds at the end and beginning of the year. In fact, net purchases by individuals amounted to 45.6 billion KRW over 5 trading days and 83.8 billion KRW over one month. Currently, with net assets of 6.2946 trillion KRW, it ranks 3rd among all ETFs.

The reason why individual investors' interest in KODEX CD Interest Rate Active continues is that this product is the only one that meets all the conditions required for a parking-type product: 'high return stability,' 'low effective transaction costs,' and 'ample liquidity.'

The KODEX CD Interest Rate Active ETF applies the lowest total expense ratio of 0.02% per annum among parking-type ETFs. Adopting a differentiated active management approach, unlike other CD interest rate ETFs that underperform the underlying CD interest rate index, it recorded returns of 3.65% annualized over 3 months and 3.74% annualized over 6 months as of the 2nd, ranking first in returns among all CD interest rate ETFs. Highlighting these advantages, the cumulative net purchases by individuals among ultra-short-term interest rate ETFs also reached 310 billion KRW, the largest scale.

Additionally, KODEX CD Interest Rate Active is recognized by individual investors as a representative parking-type ETF because it calculates the daily CD 91-day rate on a pro-rata basis and reflects it daily with compound interest. This feature allows investors to receive returns equivalent to the daily CD 91-day rate even if they invest for just one day without any period conditions. In fact, since its listing in June last year, there has not been a single day of loss over 141 trading days.

Yoo Ah-ran, a manager at Samsung Asset Management, said, “It appears that the funds for preemptive profit realization by individual investors, considering the market correction following the stock market rise at the end of last year, flowed in at the end and beginning of the year.” She added, “Given the recent concerns about credit risk stemming from PF, it is expected that more attention will be drawn to the KODEX CD Interest Rate Active ETF, which manages investors’ valuable funds stably.”

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