Samsung Asset Management's KODEX US Money Market Active ETF Surpasses 300 Billion KRW in Net Assets

The KODEX US Money Market Active ETF, which invests simultaneously in ultra-short-term US safe assets and the US dollar, has surpassed 300 billion KRW in net assets just two months after its listing. This is attributed to the increasing demand from individual investors seeking stable interest income in a high-interest-rate environment.

Samsung Asset Management announced on the 29th that the net assets of the KODEX US Money Market Active, which was listed in May, have reached 304.9 billion KRW. The cumulative net purchases by individual investors amounted to 14.9 billion KRW, marking the highest inflow among dollar-denominated short-term bond ETFs listed in Korea.

KODEX US Money Market Active is the first US money market ETF in Korea to invest simultaneously in ultra-short-term US bonds and the US dollar. As market volatility has increased significantly, investors are choosing ETFs that minimize risk while serving as a short-term dollar-based investment vehicle. Investors can directly access the US money market without the need to convert Korean won into US dollars. The price per ETF share is set at approximately 10 dollars, allowing customers to intuitively grasp returns and enhancing investment convenience.

KODEX US Money Market Active is an investment product that seeks to offer higher interest rates compared to the US base rate while also providing monthly dividends. The ETF’s annual distribution rate is 4.72% based on yield to maturity (YTM), the highest among similar products listed in Korea. Its duration is about 0.14 years, offering an optimal solution for investors seeking both stability and profitability.

Among similar products, it offers the lowest fees and the highest monthly distribution rate in Korea. It recorded a 0.53% monthly distribution rate in its first payout, providing a stable cash flow. With domestic deposit interest rates remaining in the 2% range per year, it offers retirees or conservative investors seeking regular cash flow the opportunity to receive dollar income akin to a monthly salary.

Investment costs have been minimized. The total expense ratio is 0.05% per annum, the lowest among similar products.

Shin Hyunjin, manager at Samsung Asset Management, said, "In a persistently high-interest-rate environment, investor interest in dollar money market products as representative beneficiaries is growing," adding, "As the need for systematic dollar asset allocation and portfolio diversification surges, we expect continued growth."

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