KB Asset Management, KBSTAR US 30-Year Treasury Bond Yen Exposure ETF 'Ants Love Call'

Individual investors continue to buy KB Asset Management's ‘KBSTAR US Treasury 30-Year JPY Exposure (Synthetic H) ETF.’ This is interpreted as highlighting the advantage of gaining profits from both US Treasury investments and fluctuations in the value of the Japanese yen.

KB Asset Management announced on the 19th that as of the 15th, the net purchase amount by individuals of the ‘KBSTAR US Treasury 30-Year JPY Exposure (Synthetic H) ETF’ has exceeded 51 billion KRW.

Since the product launch on December 27 last year, individual net purchases continued for 22 consecutive days except for one day on the 12th of last month, over a total of 33 trading days. This indicates that many individual investors have been steadily accumulating the product through pension accounts and others.

The ‘KBSTAR US Treasury 30-Year JPY Exposure (Synthetic H) ETF’ is the first domestic exchange-traded fund (ETF) product that simultaneously pursues capital gains from investing in 30-year US Treasuries and foreign exchange gains from fluctuations in the value of the Japanese yen. It allows investors betting on US interest rate cuts and yen appreciation to invest easily and quickly.

It is known as the Korean version of Japan’s ‘iShares 20+ Year US Treasury Bond JPY Hedged ETF,’ which has been the most notable overseas ETF among domestic investors since last year.

Domestic investors can use the ‘KBSTAR US Treasury 30-Year JPY Exposure (Synthetic H) ETF’ to invest with the same profit structure as the ‘2621JP ETF’ in personal pension and retirement pension accounts.

Another advantage of this product is that it can be invested in through existing stock accounts without the need for currency exchange procedures. To invest in Japan’s ‘2621JP ETF’ from Korea, one must open a dedicated overseas stock account and pay currency exchange fees each time they buy or sell.

The underlying index of the ‘KBSTAR US Treasury 30-Year JPY Exposure (Synthetic H) ETF’ is the ‘KIS US Treasury 30-Year JPY Exposure Index,’ which calculates the investment performance of US Treasuries with a remaining maturity of 20 years or more in Japanese yen. The yen-won exchange rate applies a foreign exchange open position, allowing investment in long-term US government bonds in yen regardless of fluctuations in the dollar value.

Kim Chan-young, head of the ETF Business Division at KB Asset Management, said, “‘KBSTAR US Treasury 30-Year JPY Exposure (Synthetic H) ETF’ has the greatest strength in allowing convenient investment in both US long-term bonds and the Japanese yen at once,” adding, “In the ongoing yen depreciation amid the strong dollar impact, we recommend a strategy of steadily accumulating this product through dollar-cost averaging.”

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