KB Asset Management's 'KIS Gukgochae 30-Year Enhanced ETF' Surpasses 400 Billion KRW in Net Assets

KB Asset Management announced on the 10th that the net assets of the ‘KBSTAR KIS Treasury Bond 30-Year Enhanced ETF’ have surpassed 400 billion KRW.

The ‘KBSTAR KIS Treasury Bond 30-Year Enhanced ETF’ invests in domestic 30-year maturity treasury bonds. It is an exchange-traded fund (ETF) that tracks 1x the daily return of the KIS Treasury Bond 30-Year Enhanced Index, calculated by KIS Bond Evaluation.

With a duration (the average maturity for recovering bond funds) of around 24 years, it offers the potential for greater capital gains in the event of future interest rate declines.

The 1-year return of the ‘KBSTAR KIS Treasury Bond 30-Year Enhanced ETF’ is 18.01%, demonstrating excellent performance that is more than double the average of 7.01% for 85 products of the same type.

As of the end of June, the yield to maturity (YTM) of this product is approximately 3.1% per annum, and dividends are paid every March and September.

Kim Chan-young, Head of the ETF Business Division at KB Asset Management, said, “We expect bond prices to rise due to future market interest rate declines,” adding, “By utilizing the ‘KBSTAR KIS Treasury Bond 30-Year Enhanced ETF,’ investors can flexibly adjust their bond allocation and invest in bonds with a small amount of capital.”

Meanwhile, KB Asset Management is rebranding its ETF brand name to ‘RISE’ and embarking on a new leap forward. The 109 ETFs listed by KB Asset Management will have their brand name changed from ‘KBSTAR’ to ‘RISE’ collectively starting from the 17th.