Samsung Asset Management said on the 28th that the "KODEX 26-12 financial bonds (AA- or above) Active" ETF has surpassed 1 trillion won in net worth.
KODEX 26-12 financial bonds (AA- or above) Active is a maturity-matching bond ETF with a maturity through December 2026. This ETF diversifies into financial bonds such as high-grade special bank bonds, commercial bank bonds, card bonds, and capital company bonds rated AA- or above, and is characterized by seeking higher interest revenue than government bonds or bank bonds. The expected yield to maturity (YTM) is about 2.94% per year.
After its listing on Oct. 28, this ETF surpassed 1 trillion won in net worth in 18 trading days and stood at 1.3487 trillion won as of the 27th. With the recent trend of cuts in domestic policy rates slowing, bond ETFs offering relatively higher interest rates are cited as a strength.
If held to maturity, a maturity-matching ETF can deliver revenue at the level of the expected yield to maturity at the time of purchase, sharing characteristics similar to holding individual bonds to maturity or time deposits. In particular, unlike time deposits, which generally have limits on investment amounts, there is no separate cap, and even if redeemed early, investors can receive in full the revenue accrued up to the time of sale without paying a cancellation fee.
Individual investors can invest 100% not only through regular accounts but also through tax-efficient accounts such as retirement pensions, pension savings, and individual savings accounts (ISA). Investing through a pension account offers stable revenue as well as additional benefits such as tax credit advantages, low tax rates after tax deferral, and separate taxation.
Manager Choi Yun-seong of Samsung Asset Management said, "Investors in the previous maturity-matching bond ETF maturing in December this year switched (rolled over) to the KODEX 26-12 financial bonds Active product as maturity approached, and at the same time, new institutional funds were added on expectations of rate cuts, leading to rapid growth," adding, "This ETF is a maturity-matching bond ETF that allows convenient investment in high-grade financial bonds and is useful for both individual and institutional investors."