KB Asset Management, 'RISE US 30-Year Treasury Active ETF' Dividend Payment

KB Asset Management announced that its ‘RISE US 30-Year Treasury Active ETF’ paid monthly dividends on the 2nd.

The ‘RISE US 30-Year Treasury Active ETF’ has confirmed dividends twice since its launch in July and August. On this day, it paid a first dividend of 48 KRW per share (distribution rate 0.46%), and on August 2nd, it paid 42 KRW per share (distribution rate 0.41%). Among active ETFs investing in US 30-year Treasuries, it showed the highest distribution rate for two consecutive months.

Recently, with rising expectations for US interest rate cuts in the second half of the year, products investing in US long-term bonds are gaining attention. Investors betting on US interest rate cuts can use the ‘RISE US 30-Year Treasury Active ETF’ to invest in US long-term bonds while also earning stable monthly dividend income.

Launched in May this year, the ‘RISE US 30-Year Treasury Active ETF’ is a monthly dividend product that invests in exchange-traded products (ETPs) based on ‘AA+’ credit-rated long-term US Treasury bonds issued in the US and receives interest monthly.

The duration of the ‘RISE US 30-Year Treasury Active ETF’ is approximately 20 to 21 years. It features an investment duration about 1.3 times longer than the typical US 30-year Treasury duration (about 16 years). When interest rates fall by 1%, the bond price increase is about 4% greater compared to the existing US 30-year Treasury, and by utilizing this active strategy, it can pursue relatively larger price fluctuations during periods of interest rate cuts.

Additionally, it is 100% investable through retirement pensions and pension savings accounts, making it convenient to use as a pension product.

Kim Chanyoung, Head of the ETF Business Division at KB Asset Management, said, “By using the ‘RISE US 30-Year Treasury Active ETF,’ which has a duration 1.3 times longer than the existing US 30-year Treasury, investors can expect greater capital gains during interest rate cuts,” adding, “We will do our best in management to provide stable monthly dividend income.”