NH Investment & Securities, 3 New Listings Including Defense Industry ETNs

NH Investment & Securities announced that it will newly list three types of Exchange Traded Notes (ETNs) on the 1st: ‘N2 Defense Industry Top5 ETN,’ ‘N2 Power Infrastructure Top5 ETN,’ and ‘N2 Monthly Leverage Defense Industry Top5 ETN.’

The N2 Defense Industry Top5 ETN selects companies with significant defense-related sales based on an analysis of defense industry-related revenues and includes the top 5 companies by market capitalization. The inclusion weights are calculated using an equal-weight method. The N2 Monthly Leverage Defense Industry Top5 ETN provides twice the monthly return of the 5 defense industry stocks, allowing for more aggressive investment in the defense sector. As the United States’ role as the world’s policeman diminishes and geopolitical conflicts such as the Russia-Ukraine war and the Israel-Hamas war continue, this product enables investment in the top 5 Korean defense companies by market capitalization at once. Korean defense companies are expected to continue increasing their order backlogs through excellent cost-effectiveness, fast delivery, and active technology transfer.

The N2 Power Infrastructure Top5 ETN selects companies based on an analysis of power infrastructure-related sales and includes 5 stocks in order of market capitalization using an equal-weight method. Globally, the artificial intelligence (AI) market is expanding, and as the AI industry grows, demand for data facilities requiring power is also increasing. Accordingly, securing power for AI industry companies has become important, and the power infrastructure industry is expected to experience a boom.

An NH Investment & Securities official stated, "The monthly leverage index is a leverage index based on monthly returns, differentiating it from existing products, improving the negative compounding effect (Volatility Drag) that occurs in daily leverage indices, and providing investors with opportunities for diversification." He added, "Especially in rising markets accompanied by volatility, the monthly leverage index can record better performance compared to the existing daily leverage index."

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