Samsung Asset Management's KODEX 25-11 Bank Bond PLUS Active Surpasses 1 Trillion KRW in Net Assets

Samsung Asset Management announced on the 19th that the KODEX 25-11 Bank Bond (AA- or higher) PLUS Active Exchange-Traded Fund (ETF) surpassed 1 trillion KRW in net assets just over two months after reaching 500 billion KRW in net assets in May. This achievement was reached approximately four months after its listing.

The KODEX 25-11 Bank Bond (AA- or higher) PLUS Active is a maturity-matching bond ETF with a maturity date of November 2025. This product invests in AAA-rated bank bonds and AA- or higher rated specialized credit finance company bonds. It employs a strategy of using repurchase agreement (RP) sales backed by the AAA bank bonds held as collateral to generate additional funds for further investment in specialized credit finance company bonds, thereby increasing the expected yield to maturity (YTM). The collateral bonds are composed of AAA-rated or higher securities to secure collateral capacity and minimize credit risk. As of the 18th, the ETF’s YTM stands at an annual rate of 3.3%.

Maturity-matching ETFs have characteristics similar to general bond investments, as holding them until maturity allows investors to realize most of the expected returns anticipated at the time of investment. Therefore, this product is suitable not only for conservative investors seeking stable investment returns by holding until maturity but also for active bond investors aiming for high interest income in a high-interest-rate environment and capital gains from price appreciation when interest rates decline.

The rapid growth of the KODEX 25-11 Bank Bond (AA- or higher) PLUS Active ETF was largely driven by domestic expectations of interest rate cuts. Investors anticipating a decline in market interest rates flocked to the fund, and the additional income structure using RP sales increased the expected yield when held until maturity.

Investors can easily check the expected yield from the time of purchase until maturity on the official website, and even if they sell before maturity, they can trade at market prices without any penalties. Individual investors can invest 100% not only through general accounts but also through retirement pension DC·IRP and pension savings accounts, making it a good investment option for those considering stable asset investments.

Im Tae-hyuk, Executive Director of the ETF Management Division at Samsung Asset Management, said, “We are now in an era where individual investors can conveniently invest in bonds, which were once considered exclusive to institutional investors. Using maturity-matching ETFs allows for easier and more convenient investment compared to directly trading bonds. Especially for pension investors, this can be a good investment tool as it offers relatively higher returns.”