KB Securities said on the 3rd that the exchange-traded note (ETN) 'KB Inverse 2X Natural Gas Futures ETN B', which invests in natural gas futures, is set to be newly listed on the 4th.
The product tracks the daily return of natural gas futures listed on the New York Mercantile Exchange (NYMEX) at a minus (-) 2 times. It gains revenue when the price of natural gas falls, but conversely, when the price rises, losses are magnified by two, making it a high-risk, high-volatility structure.
This ETN is a currency-exposed product, meaning that its performance is linked not only to the performance of natural gas futures but also to fluctuations in the dollar exchange rate.
The annual fee is 0.75%. The maturity is set at five years, allowing transactions until August 26, 2030 (Monday), after which it will be delisted.
Kim Byung-goo, head of the Passive Sales Division at KB Securities, noted, "We are conducting this listing to meet the demand of investors in the natural gas ETN that is set to be delisted due to maturity and to provide an opportunity to respond to the highly volatile natural gas market."