Samsung Asset Management's KODEX US 30-Year Treasury Active (H) ETF Surpasses 700 Billion Won in Net Assets

As expectations for a U.S. base rate cut grow, there has been a noticeable increase in capital inflows into U.S. long-term bond ETFs.

On August 28, Samsung Asset Management announced that the net assets of the KODEX US 30-Year Treasury Active (H) ETF had reached 702.7 billion won. Cumulative net purchases by individual investors amounted to 215.1 billion won, while cumulative net purchases through bank channels also reached 203.4 billion won. With individual investors’ funds flowing in rapidly, net purchases by individuals have exceeded 106.2 billion won since the beginning of the year.

As expectations for a U.S. rate cut intensify, market attention is focused on the size and pace of the cut. In July, the U.S. Producer Price Index (PPI) recorded its largest increase in three years, which led to a partial retreat in rate cut expectations. In the market, the likelihood of a significant (50bp) rate cut by the Federal Reserve in September has decreased, while the possibility of a 25bp cut is gaining traction. In this environment, demand has grown for exposure to long duration before rates begin to fall in earnest, as investors seek both high interest rates and capital gains. This has significantly contributed to the increased inflows into the KODEX US 30-Year Treasury Active (H) ETF.

The KODEX US 30-Year Treasury Active (H) ETF is the Korean version of the popular U.S. long-term bond ETF, the TLT ETF (iShares 20+ Year Treasury Bond ETF), favored by Korean retail investors. The portfolio is structured by investing in actual U.S. 30-year Treasury bonds and in U.S.-listed pure 30-year Treasury ETFs. It is designed to provide both investment stability and profitability, offering stable monthly dividends of over 4% per annum and the potential for capital gains if interest rates decline.

The total management fee is 0.015% per year, the lowest among similar products. By excluding high-cost leveraged ETFs from its investment method, the product prevents negative compounding effects and excessive indirect investment costs from being passed on to investors. Additionally, as it is not operated as a synthetic product, there are no excessive swap costs.

Yoo Aran, a manager at Samsung Asset Management, stated, "The KODEX US 30-Year Treasury Active (H) ETF is designed to closely track the performance of the U.S. 30-year Treasury bond while focusing on cost efficiency," and added, "It can serve as a good investment tool for those looking to take advantage of high interest rate investment opportunities."

The KODEX US 30-Year Treasury Active (H) ETF allows for 100% investment through retirement pension (DC, IRP) and pension savings accounts.

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