HANARO 27-06 Corporate Bond (AA-or-higher) Active ETF Newly Listed

NH-Amundi Asset Management announced on August 26 that it has listed the "HANARO 27-06 Corporate Bond (AA-or-higher) Active ETF" on the Korea Exchange.

The HANARO 27-06 Corporate Bond (AA-or-higher) Active ETF is a maturity-matching (fixed-term) ETF that will be automatically liquidated at maturity on June 22, 2027. It invests in unsecured corporate bonds with a rating of AA- or higher, a remaining issuance amount of at least 50 billion KRW, and maturities falling within one month before or after the ETF's maturity date.

Maturity-matching ETFs are suitable for investors who prefer stable and predictable returns, as they allow investors to pursue the yield to maturity (YTM) available at the time of purchase. The ETF tracks the "KIS Corporate Bond (AA-or-higher) 2706 Maturity Index" as its benchmark. As of August 22, the expected YTM based on the benchmark index was approximately 2.64%.

Even if investors do not hold the ETF until maturity, they can respond to changes in interest rates. If interest rates rise and bond prices fall, it can be an opportunity to make additional purchases. Conversely, if interest rates fall and bond prices rise, investors can realize capital gains.

It is important to note that the expected YTM for maturity-matching ETFs varies depending on the timing of investment. The expected YTM at the time of investment can be checked on the NH-Amundi Asset Management website.

Kim Seungcheol, Head of ETF Investment at NH-Amundi Asset Management, stated, "The HANARO 27-06 Corporate Bond (AA-or-higher) Active ETF is a product designed to deliver predictable performance by including highly rated corporate bonds. As a gradual reduction in the base interest rate is expected, corporate bonds offering higher yields than government bonds could be an attractive option at this time."

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