Hanwha Asset Management Launches New ARIRANG Comprehensive Bond (AA- and Above) Active ETF

[Asia Economy Reporter Kwon Jae-hee] Hanwha Asset Management listed the 'ARIRANG Comprehensive Bond (AA- and above) Active' exchange-traded fund (ETF) on the Korea Exchange on the 10th.

The 'ARIRANG Comprehensive Bond (AA- and above) Active' is an ETF that diversifies investments across various domestically issued bonds such as government bonds, monetary stabilization bonds, financial bonds, and corporate bonds. By investing in high credit rating domestic prime bonds rated AA- or higher, it aims for stability and pursues excess returns through an active strategy.

The ‘ARIRANG Comprehensive Bond (AA- and above) Active’ uses the KAP Comprehensive Bond Index (AA- and above, total return), which is composed of about 5,700 bonds representing Korea's prime bond market, as its benchmark index. The portfolio is constructed focusing on highly liquid bonds, considering the maturity and sector weights of the benchmark index, and employs various active strategies such as bond selection and timing adjustments to pursue excess returns. The investment risk rating is 5, indicating a low risk level, the average duration is 5.16 years, and the total expense ratio is 0.045% per annum.

Individual investors who found direct bond investment burdensome are expected to be able to easily invest in bonds with small amounts while maintaining duration by utilizing this ETF.

Interest in bond investment is increasing as the series of interest rate hikes by central banks worldwide, which began last year, is expected to peak this year. When the base interest rate is lowered in the future, bond prices that fell due to the rate hikes are expected to rise again, allowing investors to anticipate trading gains.

Kim Sung-hoon, Head of the ETF Business Division at Hanwha Asset Management, said, “Continuous base rate hikes may burden the real economy, and inflation is also expected to gradually ease. The ARIRANG Comprehensive Bond (AA- and above) Active is a suitable product for investors seeking opportunities in bond investment.”