MERITZ Securities announced on the 29th that it will launch four exchange-traded notes (ETNs) that can invest in Japanese 10-year Government Bonds, becoming the first in the country. The four ETNs, including ▲MERITZ Japanese Government Bonds 10-Year ETN ▲MERITZ Inverse Japanese Government Bonds 10-Year ETN ▲MERITZ 3X Leverage Japanese Government Bonds 10-Year ETN ▲MERITZ Inverse 3X Japanese Government Bonds 10-Year ETN, are set to be listed on the 30th.
All of these ETNs track the KAP Japanese Government Bonds 10-Year Total Return (TR) Index. If one anticipates a rise in Japan's long-term interest rates, they can invest in Inverse ETNs, while if a decline is expected, they can invest in directional ETNs.
All four ETNs are open-type foreign exchange products. If the yen strengthens, there can be foreign exchange gains. Conversely, if the yen weakens, there will be foreign exchange losses.
Kwon Dong-chan, head of trading at MERITZ Securities, noted, "Japan has been in a prolonged low-interest-rate situation for a long time, but currently, with rising inflation and concerns about increased expenditure, interest rates are on the rise." He added, "With this MERITZ ETN lineup, it will be possible to hedge against interest rate rise risks or establish short-term trading strategies utilizing volatility."