[Asia Economy Reporter Ji Yeon-jin] Hana Financial Investment announced the launch of two futures ETNs based on the KOSDAQ representative index (Hana KOSDAQ150 Futures ETN, Hana Inverse KOSDAQ150 Futures ETN).
The newly introduced two futures ETNs are Exchange Traded Notes (ETNs) for which Hana Financial Investment directly provides liquidity (LP) and pays returns linked to the KOSDAQ150 futures index. Although similar in structure to ETFs, unlike existing products that only allowed downside investment in the KOSDAQ futures market, the ‘Hana KOSDAQ150 Futures ETN’ can seek profits even in a rising market.
The underlying asset, the KOSDAQ150 futures index, is a futures index of the KOSDAQ150 index composed of 150 stocks selected comprehensively considering market representativeness and liquidity, with regular stock replacements every six months.
Cha Ki-hyun, Head of the Equity Division at Hana Financial Investment, stated, “The two ETNs launched this time are products planned to secure investment stability by utilizing the KOSDAQ150 futures index and to help expand the investment base through this. We will continue to strive to introduce various underlying assets and financial investment products to further activate the ETN market.”
This product is not protected by the Korea Deposit Insurance Corporation under the Depositor Protection Act. Principal loss may occur due to credit risk, so investors should receive sufficient explanations about the product before investing. Hana Financial Investment’s credit rating is AA- (NICE Credit Rating, October 14, 2020), and when trading leveraged Exchange Traded Products (ETPs), prior education from the ‘Financial Investment Education Institute’ must be completed before purchase is possible.
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