Samsung Asset Management Lists KODEX 27-12 Corporate Bond Active ETF

Samsung Asset Management announced on the 14th that it will newly list the 'KODEX 27-12 Corporate Bonds (AA- and above) Active ETF.' This ETF has a maturity date like individual bonds, with a duration until December 2027.

KODEX 27-12 Corporate Bonds (AA- and above) Active invests in high-quality corporate bonds with credit ratings of AA- or higher, offering higher interest income compared to government or bank bonds. The expected yield to maturity (YTM) is 2.88% per annum (as of January 13, 2025), with a total fee of 0.09% per year.

Maturity-matching ETFs with fixed maturities can provide relatively high expected yields to maturity (YTM) when invested in a high-interest-rate environment. Additionally, since the Bank of Korea began lowering the base interest rate last year and is expected to enter a rate-cutting cycle, capital gains from falling interest rates can also be anticipated.

KODEX 27-12 Corporate Bonds (AA- and above) Active invests in top-tier corporate bonds ranging from AAA to AA- ratings. Based on Samsung Asset Management’s thorough credit analysis, it plans to minimize credit risk through preemptive risk management and diversified investments.

Maturity-matching ETFs have characteristics similar to both bond maturity investments and fixed deposits, making them convenient for investors interested in bond investments during high-interest-rate periods. They are also suitable for investors seeking stable performance in potentially volatile markets. Unlike fixed deposits, which generally have investment amount limits, these ETFs have no such restrictions and allow investors to receive all accumulated earnings up to the point of sale without any early redemption fees.

As a safe asset, individual investors can invest 100% not only through general accounts but also through tax-advantaged accounts such as retirement pensions, pension savings, and ISAs. Investing through pension accounts offers additional benefits such as tax deductions and deferred taxation with lower tax rates, along with stable returns.

Im Tae-hyuk, Executive Director of Samsung Asset Management’s ETF Operations Headquarters, introduced the product by saying, "The KODEX 27-12 Corporate Bonds (AA- and above) Active ETF is a product that diversifies investments in high-grade corporate bonds carefully selected by Samsung Asset Management’s bond management team, which manages the industry’s largest bond products worth 179 trillion KRW."

He added, "Since it offers attractive interest rates compared to government or bank bonds of the same maturity, it will be a good choice for investors seeking stability along with relatively high interest rates."

Samsung Asset Management has built a diverse lineup of maturity-matching ETFs, holding the largest net assets in the industry at 2.7 trillion KRW.

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