Samsung Asset Management Surpasses 10 Trillion KRW in Total Bond ETFs

19 Kinds of Bond-type KODEX ETFs, Industry's First 10 Trillion
KODEX KOFR Interest Rate Active 3.2 Trillion
KODEX Comprehensive Bond (AA- or Higher) Active 2.5 Trillion

[Asia Economy Reporter Kwangho Lee] Samsung Asset Management announced on the 9th that all 19 bond-type ETFs of KODEX have surpassed an industry-first net asset size of 10 trillion KRW.

The total size of domestically listed bond-type ETFs is 24 trillion KRW, with KODEX ETFs accounting for about 42% of this. At the beginning of last year, Samsung Asset Management's KODEX bond-type ETFs had a total size of 4.6 trillion KRW, but in about a year, they more than doubled to grow to 10 trillion KRW. This is analyzed as a result of continued investor interest in bond-type ETFs amid a high interest rate environment.

Among the total 19 KODEX ETFs, three representative ETFs have surpassed net assets of over 1 trillion KRW. The KODEX KOFR Interest Rate Active ETF has 3.2 trillion KRW, the KODEX Comprehensive Bond (AA- or higher) Active ETF has 2.5 trillion KRW, and the KODEX Short-Term Bond PLUS ETF has 1.2 trillion KRW.

▲ The KODEX KOFR Interest Rate Active ETF tracks the KOFR interest rate, Korea's risk-free benchmark rate, and since its listing in April last year, it has maintained a 'zero loss days' record with not a single day of loss for over 10 months. ▲ The KODEX Comprehensive Bond (AA- or higher) Active ETF is Korea's first active bond ETF, tracking the KAP Korea Comprehensive Bond Index based on about 4,000 bonds representing the Korean high-grade bond market. ▲ The KODEX Short-Term Bond PLUS ETF tracks the KRW Cash PLUS Index, which consists of government bonds, Monetary Stabilization Bonds, special bonds (AAA or higher), bank bonds (AAA or higher), corporate bonds (AA- or higher), card bonds (AA+ or higher), and commercial paper (A1 or higher) with a remaining maturity of one year or less. It is a short-term bond ETF that offers stable returns with liquidity similar to MMFs or CMAs.

Im Taehyuk, Executive Director of ETF Management at Samsung Asset Management, said, "Since listing Korea's first bond-type ETF in 2008, Samsung Asset Management has continuously supplied various bond-type ETFs, leading the industry and becoming the first to surpass the 10 trillion KRW net asset mark." He added, "Investors need to pay attention to bond investments as interest rates have risen significantly compared to the past, and we hope they add stability to their portfolios through diversification into bonds rather than focusing solely on risky assets."

Meanwhile, Samsung Asset Management offers a lineup ranging from the industry's lowest duration KOFR Interest Rate Active ETF to the industry's longest duration 30-year government bond ETF. Regionally, it covers domestic, Asian, and U.S. bond markets, and by credit, it ranges from risk-free government bonds to corporate bonds, making bond investment possible solely with KODEX ETFs.