Samsung Asset Management's KODEX 23-12 Bank Bond Active ETF Surpasses 1.5 Trillion Won

Approximately 880 Billion Inflow Since Early Year
Largest Net Assets Among Domestic Bond ETFs

Samsung Asset Management announced on the 22nd that the net assets of the ‘KODEX 23-12 Bank Bond (AA+) Active ETF’ surpassed 1.5 trillion KRW, reaching 1.5383 trillion KRW.

The KODEX 23-12 Bank Bond Active ETF is a maturity-matching ETF that invests in AAA-rated special bank bonds and commercial bank bonds, with a maturity date of December 2023. The ETF’s expected yield to maturity (YTM) is 3.73% per annum.

Since the beginning of the year, this ETF has attracted 880.7 billion KRW in funds, recording the largest net asset inflow among domestic bond ETFs, and has grown to a scale of 1.5 trillion KRW within six months of its listing.

This is analyzed to be due to the environment created by the high tightening intensity, such as the rapid interest rate hikes by the Bank of Korea since last year, which increased the likelihood of credit risk. Institutional investors, who had been conservatively managing bond funds, showed a strong preference for bank bonds, which have higher credit ratings and sufficiently favorable interest rates compared to corporate bonds.

Maturity-matching ETFs attract investor interest because holding them until maturity allows investors to earn returns at the expected yield level anticipated at the time of purchase, similar to fixed deposits. Unlike fixed deposits, they have the advantages of no penalties for early redemption and no restrictions on investment amounts.

Im Tae-hyuk, Executive Director of the ETF Management Division at Samsung Asset Management, said, “The reason why the KODEX 23-12 Bank Bond Active ETF was able to grow to a scale of 1.5 trillion KRW in a short period was due to the successful launch of a customized product based on macro environment analysis and prior research on the risk preferences of institutional investors, who are major players in the bond ETF market.”