Samsung Asset Management Lists KODEX US 30-Year Treasury +12% Premium ETF

Samsung Asset Management announced on the 39th that it will newly list the KODEX US 30-Year Treasury +12% Premium (Synthetic H) Exchange-Traded Fund (ETF).

The KODEX US 30-Year Treasury +12% Premium (Synthetic H) invests in US long-term bonds with a duration of over 20 years while securing a premium of around 12% annually by selling weekly call options that mature every week to a certain extent. The coupons (interest) received from US bonds are reinvested. The total fee is also the lowest among similar covered call strategy products investing in US bonds, at an annual rate of 0.25%.

Unlike similar products previously launched, the KODEX US 30-Year Treasury +12% Premium expands the investment ratio in US bonds by selling weekly options every week. By actively adjusting the proportion of call option sales using short-term options, the investment ratio in US bonds is increased while limiting the premium to around 12% annually, allowing participation in capital gains arising from interest rate cuts in addition to the 12% annual dividend. This product is suitable for investors who want to maximize capital gains through long-term bond investments beyond the planned monthly distribution level.

Additionally, this product is a currency-hedged product designed to prevent foreign exchange losses due to dollar movements, as the value of the dollar tends to decline along with interest rate cuts, enabling investors to fully obtain capital gains from US long-term bonds.

Furthermore, the KODEX US 30-Year Treasury +12% Premium (Synthetic H) can be invested 100% through DC/IRP and pension savings accounts, making it ideal as a pension ETF that offers stable returns and tax benefits. In a situation where the timing of US interest rate cuts is uncertain, it is expected to provide a triple benefit by allowing stable monthly distributions from investments in US long-term bonds, reinvestment of those distributions, and tax advantages.

Im Tae-hyuk, Executive Director of the ETF Management Division at Samsung Asset Management, stated, “Due to the robust US economy and high inflation, the current interest rate level is expected to remain higher for longer than anticipated. This ETF is designed with a partial covered call method, allowing stable monthly premium dividends and aggressive capital gains through high duration when interest rates fall, making it the smartest investment product for US long-term government bonds in the current market environment.”