Exchange Announces Four Indices Including 'KRX Dow Jones U.S. Dividend Treasury Mixed Index'

by Song Hwajung

Published 03 Apr.2024 13:42(KST)

The Korea Exchange announced on the 3rd that it plans to release four new indices, including mixed indices of overseas stocks and bonds, on the 8th.

Korea Exchange, Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

In response to the growing demand for overseas investment products, the Exchange has developed its first overseas bond index and overseas stock-bond mixed index. The 'KRX U.S. Treasury 10-Year Index' tracks the yield of the 10-year U.S. Treasury bond, which is used as a global interest rate benchmark. It is expected to meet the increasing investment demand amid recent interest rate decline forecasts and to be utilized in various mixed indices.

The 'KRX Dow Jones U.S. Dividend Bond Mixed Index,' jointly developed with S&P Dow Jones Indices, combines the Dow Jones U.S. Dividend 100 Index and the KRX U.S. Treasury 10-Year Index in a 50:50 ratio. This index aims to pursue stable cash flow and reflects the high recent investment demand.

Additionally, the Exchange developed two 'Monthly Inverse -2X Indices' that track -2 times the monthly cumulative returns of the KOSPI 200 and KOSDAQ 150 futures. Together with the existing monthly leverage indices (2X), these strategic indices provide a lineup that seeks excess returns tailored to market conditions in both rising and falling markets.

An Exchange official stated, "We expect various financial products that satisfy investor demand to be launched through the development of these overseas indices," adding, "We plan to actively strive to develop advanced indices that the market requires in the future."