Personal Net Purchases Surpass 13.4 Billion KRW in the Last Month
Net Inflow of 3.7 Billion KRW on the 26th Alone
‘Zero Loss Days’ Since April Listing
26 Consecutive Trading Days of Record Highs
[Asia Economy Reporter Hwang Yoon-joo] Samsung Asset Management's 'KODEX KOFR Interest Rate Active ETF' is creating a sensation among individual investors. As a ultra-short-term product, it has never recorded a loss since its listing, which has recently become known among individual investors, leading to its active use as a 'parking account.'
Samsung Asset Management announced on the 29th that over the past month, the 'KODEX KOFR Interest Rate Active ETF' recorded net purchases of 13.4 billion KRW by individuals, ranking first among all bond-type ETFs. On the 26th alone, net purchases reached 3.7 billion KRW, bringing the cumulative net purchases by individuals since its listing on April 26 to 16.1 billion KRW.
The Samsung KODEX KOFR Interest Rate Active ETF is the only domestic ETF that tracks the return of the Korea Overnight Financing Rate (KOFR) index. Since the KOFR rate is calculated based on repurchase agreement (RP) transaction data secured by overnight government bonds and monetary stabilization bonds, the KODEX KOFR Interest Rate Active ETF has been able to maintain a 'zero loss day' record.
Because it deals with a one-day product with a duration of one day, interest income is confirmed and accumulated on each business day, so there is almost no risk of loss due to interest rate fluctuations. In fact, unlike other bond products, when interest rates rise, the daily interest increases, which enhances the product's returns.
Therefore, despite recent interest rate hikes by the US FOMC and the Bank of Korea leading to rising market interest rates, the KODEX KOFR Interest Rate Active ETF has set new highs for 26 consecutive trading days from the 21st of last month to the 26th of this month.
The KODEX KOFR Interest Rate Active ETF is easily set and redeemed not only through on-exchange trading but also over-the-counter, and since daily interest income is confirmed, institutional investors who require liquidity management have a high participation rate. The total net assets under management (AUM) amount to 1.78 trillion KRW, making it the largest among short-term bond products.
Individual investors also want to manage their waiting investment funds with relatively higher returns than the average deposit interest rates of securities firms or general CMAs, leading to an increase in on-exchange trading for short-term investments like a 'parking account.' In fact, individual trading volume over the past month reached 280 billion KRW, exceeding 10 billion KRW per day on average.
Individual investors who invest through trust accounts such as DC and IRP, which do not bear transaction fees, or use non-face-to-face accounts can actively generate returns by managing cash assets with the KODEX KOFR Interest Rate Active ETF.
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