KB Securities to Simultaneously List Four ETNs Including BYD Value Chain-Related Products

KB Securities announced on November 28 that it will newly list a total of four themed Exchange-Traded Notes (ETNs) on December 1: two ETNs investing in the BYD value chain, a leading Chinese electric vehicle industry, namely the "KB BYD Value Chain ETN" and the "KB Leverage BYD Value Chain ETN," as well as two ETNs based on the US Nasdaq 100 index, the "KB Leverage US Nasdaq 100 TR ETN B" and the "KB Inverse 2X US Nasdaq 100 TR ETN B."

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The newly launched KB BYD Value Chain ETN and KB Leverage BYD Value Chain ETN are products that invest in the value chain ecosystem centered on BYD, a leading Chinese electric vehicle company. These products are based on the "Indxx China Smart Mobility Value Chain NTR Index" and the "Indxx China Smart Mobility Value Chain 2X Leveraged NTR Index," which are composed of BYD and 14 major listed companies (a total of 15 stocks) that supply parts, materials, technology, and services to BYD.

BYD is rapidly expanding its presence in the global market based on advanced manufacturing technologies such as electric vehicles, batteries, and semiconductors. Through these products, investors will have the opportunity to indirectly invest in the overall Chinese electric vehicle industry related to BYD.

Both products are currency-exposed, meaning their returns are affected by fluctuations in the exchange rate between the Korean won and the Chinese yuan. They have a maturity of 10 years, allowing trading until November 21, 2035, and are characterized by a management fee set at 0%, minimizing cost burdens.

Additionally, the KB Leverage US Nasdaq 100 TR ETN B and KB Inverse 2X US Nasdaq 100 TR ETN B are relisted products that replace existing products scheduled for delisting due to maturity. These ETNs track the daily returns of the NASDAQ-100 Total Return Index at +2 times and -2 times, respectively.

Both of these products are also currency-exposed, so their returns may be affected by fluctuations in the won-dollar exchange rate. The annual management fees are 1.18% and 0.77%, respectively, and they have a 10-year maturity, allowing trading until November 21, 2035.

Kim Byunggu, Head of Passive Sales at KB Securities, stated, "These four newly listed products simultaneously cover two pillars: the Chinese electric vehicle industry and US growth stocks. We will continue to introduce differentiated themed ETNs to enable investors to efficiently construct their portfolios in various market environments."

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