Samsung Asset Management, KODEX 25-12 Bank Bond Active ETF... "Net Assets Surpass 1 Trillion Won in Just Over 4 Months Since Listing"

Samsung Asset Management announced on the 17th that the ‘KODEX 25-12 Bank Bond (AAA) Active Exchange-Traded Fund (ETF)’ surpassed 1 trillion KRW in net assets within 76 trading days since its listing in September last year.

KODEX 25-12 Bank Bond (AAA) Active is a maturity-matching bond ETF with a maturity date of December 2025. It is an ETF that diversifies investments across special banks and commercial banks, selecting only AAA-rated bank bonds with the highest credit rating for investment. As of now, the expected yield to maturity is approximately 2.87% per annum, maintaining high stability despite market volatility.

The rapid growth is attributed to many investors who were satisfied with the KODEX 23-12 Bank Bond Active and KODEX 24-12 Bank Bond Active ETFs reinvesting heavily into the 25-12 Bank Bond Active ETF. Amid delayed expectations for a US interest rate cut and concerns over a global economic recession and its potential impacts, the portfolio composed solely of AAA-rated bank bonds offers unparalleled stability while providing an expected yield to maturity (YTM) about 0.24 percentage points higher than government bond yields, drawing significant attention.

Generally, maturity-matching ETFs have characteristics similar to fixed deposits or bonds, as holding them until maturity yields the expected return estimated at the time of purchase. Therefore, they are suitable for investors seeking the most stable investment returns in highly volatile markets and those interested in bond investments during high interest rate environments. Investors can easily check the expected yield to maturity from the current purchase point on the website and conveniently buy the ETF like stocks. Additionally, unlike fixed deposits, there are no disadvantages from early sales, and trading is simpler compared to bonds, attracting considerable interest from both institutional and individual investors.

Individual investors can invest 100% not only through general accounts but also through various tax-saving accounts. They can invest 100% through retirement pension DC/IRP asset management accounts, pension savings accounts, and ISA accounts. Investing through tax-saving accounts allows investors to enjoy stable returns as well as various benefits such as tax credits, deferred taxation with low tax rates, and separate taxation.

Yoo Ah-ran, a manager at Samsung Asset Management, stated, “Following the success of the 23-12 and 24-12 Bank Bond ETFs, the KODEX 25-12 Bank Bond Active has grown rapidly, surpassing 1 trillion KRW in a short period. The KODEX 25-12 Bank Bond (AAA) Active ETF is a product that allows easy investment in AAA-rated bank bonds and is useful for both individual and institutional investors.”

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