Mirae Asset Securities Lists 6 Market Benchmark Index-Linked ETNs

[Asia Economy Reporter Song Hwajeong] Mirae Asset Securities announced on the 21st that it has listed a total of six Exchange Traded Notes (ETNs) on the Korea Exchange, including four ETNs linked to the market benchmark indices KOSPI 200 Futures Index and KOSDAQ 150 Futures Index, and two loss-limited ETNs linked to the KOSDAQ 150 Index.

The newly listed "Mirae Asset KOSPI 200 Futures ETN" uses the Korea Exchange KOSPI 200 Futures Index TWAP type as its underlying index and tracks the movement of the KOSPI 200 futures at a 1x multiple. Conversely, the "Mirae Asset Inverse KOSPI 200 Futures ETN" uses the KOSPI 200 Futures TWAP Inverse Index as its underlying index and tracks the movement of the KOSPI 200 futures at a -1x multiple.

The "Mirae Asset KOSDAQ 150 Futures ETN" uses the KOSDAQ 150 Futures Index TWAP type as its underlying index and tracks the movement of the KOSDAQ 150 futures at a 1x multiple. Conversely, the "Mirae Asset Inverse KOSDAQ 150 Futures ETN" uses the KOSDAQ 150 Futures TWAP Inverse Index as its underlying index and tracks the movement of the KOSDAQ 150 futures at a -1x multiple.

Among the four market benchmark index ETNs newly listed, the two forward-direction ETNs, "Mirae Asset KOSPI 200 Futures ETN" and "Mirae Asset KOSDAQ 150 Futures ETN," feature zero issuance fees to promote activation of the ETN market. (Trading fees apply during transactions)

In addition, Mirae Asset Securities also listed two loss-limited ETNs linked to the KOSDAQ 150 Index. The "Mirae Asset KOSDAQ 150 Auto-KO-C 2212-01 ETN" pays twice the rate of increase at maturity if the KOSDAQ 150 Index rises above the reference index (closing price on October 14), and pays twice the rate of loss if it falls below the reference index. (Before deducting fees)

However, if at maturity the underlying index is below 85% of the reference index, 70% of the issuance price (10,000 KRW) will still be paid. Also, if on any business day the closing price of the underlying index falls to 90% or less of the reference index, early redemption will occur to prevent additional losses in case of a sharp drop in the underlying asset.

The "Mirae Asset KOSDAQ 150 Auto-KO-P 2212-01 ETN" pays twice the rate of loss at maturity if the KOSDAQ 150 Index falls below the reference index (closing price on October 14), and pays twice the rate of increase as a loss if it rises above the reference index.

However, if at maturity the underlying index is above 115% of the reference index, 70% of the issuance price (10,000 KRW) will still be paid. Also, if on any business day the closing price of the underlying index rises to 110% or more of the reference index, early redemption will occur to prevent additional losses in case of a sharp rise in the underlying asset.

These ETNs are principal non-guaranteed products that pay at least 70% of the minimum issuance price (10,000 KRW) and are listed products, so investors should be aware that the maximum loss rate may increase depending on the purchase timing.

A Mirae Asset Securities official stated, "Among the loss-limited ETN products listed this time, the Mirae Asset KOSDAQ 150 Auto-KO-P 2212-01 ETN provides a profit and loss rate linked to the KOSDAQ 150 Index movement at -2x depending on market conditions," adding, "This structure is commonly called 'Gopbus' and is the first type to be listed in the Exchange Traded Product (ETP) market on the exchange."

This product can be traded like regular stocks after the listing date, and inquiries regarding ETN trading and online transaction methods can be confirmed through the Mirae Asset Securities Customer Center.

This financial investment product may incur losses of principal (0-100%) due to asset price fluctuations, credit rating downgrades, etc., and such losses are borne by the investor.