NH Investment & Securities, Launches Two New Domestic Major Index ETNs

[Asia Economy Reporter Lee Seon-ae] NH Investment & Securities announced on the 21st that it will newly list two exchange-traded notes (ETNs) that track the returns of Korea's representative indices, KOSPI 200 and KOSDAQ 150, in a positive direction.

The ‘QV KOSPI 200 ETN’ tracks the KOSPI 200 index at 1x leverage, with △issuance volume of 1 million shares △issuance size of 40 billion KRW △issuance price of 40,000 KRW. The ‘QV KOSDAQ 150 ETN’ tracks the KOSDAQ 150 index at 1x leverage, with △issuance volume of 4 million shares △issuance size of 60 billion KRW △issuance price of 15,000 KRW.

Both products are the first exchange-traded products (ETPs) with zero annual fees, meaning that the returns based on index fluctuations are fully reflected in the final indicative value (IV) without any cost deductions.

The maturity date is September 15, 2031, and the final trading date is September 11, 2031. The maturity redemption payment will be made on September 17, 2031, based on the final indicative value (IV) on the final trading date.

An NH Investment & Securities official stated, “We expect a consumption-driven economic recovery momentum in the fourth quarter based on the effects of the COVID-19 vaccine, and accordingly, we plan to launch two domestic representative index ETNs that allow investment in the rising domestic stock market.” He added, “These two products have the advantage of no management fees or tracking errors compared to existing ETFs that invest in domestic representative indices. In the fourth quarter, we also plan to list various commodity products and strategically structured products that meet investors’ demands.”