KODEX KOFR Interest Rate Active ETF Surpasses 3 Trillion KRW in Net Assets Just 5 Months After Listing

105 Trading Days of 'No Loss Record' March
Individual Investors' Rapid Short-Term Growth with 'Parking Account'

[Asia Economy Reporter Hwang Yoon-joo] Samsung Asset Management's KODEX KOFR Interest Rate Active ETF has surpassed 3 trillion KRW in net assets just five months after its listing.

On the 28th, Samsung Asset Management announced that the net assets of the Samsung KODEX KOFR Interest Rate Active ETF reached 3.02 trillion KRW. This ETF, which broke the record for the shortest period to surpass 2 trillion KRW in net assets just four months after its listing earlier this month, has set a new record by increasing another 1 trillion KRW within 15 trading days.

The Samsung KODEX KOFR Interest Rate Active ETF is currently the third largest among 622 domestic ETFs. At the end of August, it ranked 8th in net asset size among all ETFs, rose to 6th in early September, and as of the end of September, it has rapidly grown to enter the top 3. The largest net asset size currently is the KODEX200 ETF (4.85 trillion KRW), followed by the TIGER China Electric Vehicle SOLACTIVE ETF (3.4 trillion KRW).

The Samsung KODEX KOFR Interest Rate Active ETF is the only domestic ETF that tracks the performance of the Korea Overnight Financing Rate (KOFR) index. KOFR is the overnight collateralized rate for government bonds and monetary stabilization bonds. This ETF confirms and accumulates interest income on each trading day, minimizing the risk of losses due to interest rate fluctuations. Despite recent increases in market interest rates, the KODEX KOFR Interest Rate Active ETF has maintained a loss-free streak for all 105 trading days since its listing. As of September 27, the KOFR rate stands at an annualized 2.564%.

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The KODEX KOFR Interest Rate Active ETF is rapidly growing as institutions trade large volumes of short-term funds both on and off the market, and individual investors have significantly increased their on-market investments.

Due to its nature of tracking a risk-free benchmark interest rate, the ETF has never recorded a loss day since its listing, which has attracted attention. Additionally, its returns have outperformed the underlying index, leading to a sharp increase in individual investors' on-market trading. For example, the 1-month return of the underlying index is 2.51% annually, while the net asset value (NAV) return is 2.55% annually. The 3-month returns also show outperformance, with the underlying index at 2.26% annually and NAV at 2.29% annually.

Individual investors' cumulative net purchases over one month reached 31.2 billion KRW, with total cumulative net purchases amounting to 47.3 billion KRW. Amid a continuing trend of rising interest rates and uncertain market direction, this ETF is being actively used as a tailored product for individual investors who want to 'park' their funds temporarily.

Im Tae-hyuk, Head of ETF Operations at Samsung Asset Management, stated, "The KODEX KOFR Interest Rate Active ETF has the advantage of immediately reflecting interest rate hikes, making it the easiest and most convenient cash management tool for investors hesitant to invest in volatile markets."