KB Asset Management announced on the 3rd that the 3-month, 6-month, and 1-year returns of the ‘KBSTAR Money Market Active Exchange-Traded Fund (ETF)’ are 1.01%, 2.12%, and 4.36%, respectively, ranking first among the 17 parking-type ETFs currently listed in Korea.
Parking-type ETFs are products that pursue short-term returns and essentially serve the same role as parking accounts. While bank fixed deposits require the agreed period to be completed to receive all the interest, parking-type ETFs can yield annual returns of around 3-4% even with just one day of investment.
The ‘KBSTAR Money Market Active ETF’ invests in ultra-short-term bonds within 3 months and pursues an active excess return strategy, delivering relatively outstanding performance even within the same category. Its underlying index is the ‘KIS Market Value MMF Index.’ It mainly invests about 70-80% in short-term bonds and commercial paper (CP) within 3 months, and about 20-30% in cash-equivalent assets such as fixed deposits with low price volatility.
The portfolio’s weighted average remaining maturity is managed at around 40-80 days depending on market conditions, and it seeks excess returns through additional asset purchases by selling repurchase agreements (RP) when necessary. Another advantage is its high liquidity, allowing investors to withdraw funds anytime without being bound by the agreed period.
Thanks to these advantages, the ‘KBSTAR Money Market Active ETF’ surpassed 100 billion KRW in cumulative net purchases by individuals since the beginning of the year and grew its net asset size to about 1.8 trillion KRW within one year of its launch.
Kim Chan-young, Head of the ETF Business Division at KB Asset Management, said, “In situations with high stock market uncertainty, it would be advantageous to invest in products like parking-type ETFs to generate returns,” adding, “From an investor’s perspective, it is important to carefully compare returns even for short-term funds.”
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