NH Amundi to List KOFR Interest Rate Reactive (Synthetic) ETF on the 14th

Pursuing Convenient and Stable Returns
Tracking the Korea Risk-Free Rate Index

NH-Amundi Asset Management will list the HANARO KOFR Interest Rate Reactive Special Asset Listed Index Investment Trust [Interest Rate-Derivative Type] (Synthetic), which is managed based on the KOFR Index, on the 14th.

KOFR stands for Korea Overnight Financing Repo Rate, a benchmark interest rate in South Korea calculated using the overnight RP rate secured by government bonds and Monetary Stabilization Bonds. Since it is based on actual ultra-short-term transactions secured by government bonds and Monetary Stabilization Bonds, which are considered virtually risk-free bonds, it is evaluated as having very low risk.

The NH-Amundi Asset Management HANARO KOFR Interest Rate Reactive (Synthetic) ETF is an ETF managed based on the KOFR Index. Unlike term bonds, it generates daily interest, so there is no capital loss even when interest rates rise. Although the interest rate may fluctuate every business day, the interest income is confirmed daily, resulting in a lower risk of loss due to interest rate changes.

This product is characterized by stability and convenience, making it an optimal investment product for managing short-term funds during periods of rising interest rates. Of course, it can also be expected to provide steady interest income during periods of low interest rate volatility. Additionally, as an ETF product, it offers relatively low management costs and can be traded like stocks, enhancing investment convenience.

Kim Hyun-bin, Head of the ETF Investment Division, stated, “The HANARO KOFR Interest Rate Reactive (Synthetic) ETF is worth considering for both individual and institutional investors who want to invest in stable assets in a highly volatile market during periods of rising interest rates.”