KODEX 26-12 Financial Bonds Active ETF Surpasses 1 Trillion Won in Net Assets

Samsung Asset Management announced on the 28th that the 'KODEX 26-12 Financial Bonds (AA- or Higher) Active' ETF has surpassed 1 trillion won in net assets.

KODEX 26-12 Financial Bonds (AA- or Higher) Active is a maturity-matched bond ETF with a maturity date set for December next year. This ETF diversifies investments across high-grade financial bonds such as special bank bonds, commercial bank bonds, card company bonds, and capital company bonds, all with credit ratings of AA- or higher. It aims to deliver higher interest income compared to government bonds or bank bonds. The expected yield to maturity (YTM) is around 2.94% per annum, maintaining high stability even amid market volatility.

Since its listing on the 28th of last month, it has surpassed 1 trillion won in net assets in just 18 trading days and currently stands at 1.3487 trillion won. The rapid growth in net assets is attributed to bond ETFs offering relatively higher interest rates, especially as the trend of domestic policy rate cuts has slowed recently.

Maturity-matched ETFs allow investors to earn returns at the expected yield to maturity level set at the time of purchase if held to maturity, making them similar to traditional bond maturity investments or time deposits. In particular, unlike time deposits, which usually have investment limits, these ETFs have no such restrictions, and investors can receive the full accrued returns up to the point of sale without paying early redemption fees, even if they redeem before maturity.

Investors interested in bond investments can use ETFs for more convenient access to bonds, and these products are also suitable for those seeking stable investments in volatile markets.

Individual investors can invest 100% not only through regular accounts but also via tax-advantaged accounts such as retirement pensions, pension savings, and ISAs. Investing through pension accounts offers not only stable returns but also additional benefits such as tax deductions, deferred taxation followed by low tax rates, and separate taxation.

Choi Yoonseong, manager at Samsung Asset Management, said, "Investors in existing maturity-matched bond ETFs maturing in December this year have switched to the KODEX 26-12 Financial Bonds Active product as their maturities approached. At the same time, expectations of interest rate cuts have attracted new institutional funds, leading to rapid growth."

He added, "This ETF is a maturity-matched bond ETF that allows convenient investment in high-grade financial bonds, making it a useful product for both individual and institutional investors."

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