KB Securities Lists New Interest Rate-Type 'KB KIS CD Interest Rate Investment ETN'

On the 19th, KB Securities announced that it will newly list the 'KB KIS CD Interest Rate Investment Exchange Traded Note (ETN)' on the 20th.

The KB KIS CD Interest Rate Investment ETN is an interest rate product that tracks the investment performance of 3-month negotiable certificates of deposit (CDs).

Since 2021, supported by the global trend of rising interest rates, the yield on CDs, a representative short-term interest rate indicator in Korea, has steadily increased. Given the unlikely prospect of a sharp interest rate cut in the near future, short-term interest rate instruments are expected to remain attractive to investors.

The 'KIS CD Interest Rate Investment Total Return Index,' calculated by KIS Asset Evaluation, tracks the 91-day CD rate announced by the Korea Financial Investment Association and reflects changes in the short-term money market. The KB KIS CD Interest Rate Investment ETN launched by KB Securities is based on this index.

The KB KIS CD Interest Rate Investment ETN is expected to be a useful investment tool for investors with short-term fund management investment needs. It allows free trading regardless of maturity and is reinvested daily at the CD yield announced by the Korea Financial Investment Association. Since the elapsed days are considered in the CD yield and reflected in the performance of the underlying index, even if the CD yield falls compared to the investment timing, investors can benefit from daily reinvestment based on the announced CD yield.

The total fee for the KB KIS CD Interest Rate Investment ETN is 0.03% per annum, which is prorated and reflected daily in the final indicative value (IV). The maturity is 10 years, allowing trading until March 16, 2034, after which it will be delisted.

Kim Byung-gu, Head of Passive Sales Division at KB Securities, said, "KB Securities is doing its best to reflect the changing financial investment environment," adding, "We plan to diversify the KB ETN lineup and actively supply a wide range of products."