KODEX CD Geumri Active, Individual Cumulative Net Purchase Surpasses 1 Trillion Won

Samsung Asset Management announced on the 16th that the cumulative net purchases by individuals of the KODEX CD Interest Rate Active ETF have exceeded 1 trillion KRW. This achievement came 14 months after its listing in June 2023, making it the top ETF among interest rate and bond-type ETFs and the sixth largest among all ETFs.

KODEX CD Interest Rate Active saw net individual purchases of 731.3 billion KRW, more than 2.5 times the 283.7 billion KRW recorded last year. Since its listing, there have been a total of 38 days when individuals net purchased over 10 billion KRW, with the largest daily net purchase amounting to 32.8 billion KRW on February 28 of this year.

The inflow of individual funds into the KODEX CD Interest Rate Active ETF can be attributed to its higher returns, lower transaction costs, and ease of trading compared to traditional bank parking products.

KODEX CD Interest Rate Active calculates the daily interest rate level of the 91-day CD on a pro-rata basis and compounds it daily, so investors receive the equivalent of one day’s interest on the 91-day CD even if they invest for just one day without any period conditions. In fact, since its listing in June last year, it has provided an average daily profit of about 151 KRW per share without any loss days.

With the prolonged high-interest-rate environment, the 91-day CD rate recently reached an annualized 3.49%, allowing KODEX CD Interest Rate Active to establish itself as a high-interest-rate “parking” product.

Another major advantage is that investors can buy or sell KODEX CD Interest Rate Active at any time during the day with an actual transaction cost of about 5 KRW, without worrying about price fluctuations. Although the price per share of KODEX CD Interest Rate Active is the highest at 1,045,070 KRW, it applies the same 5 KRW bid-ask spread as other ETFs. Liquidity providers (LPs) offer abundant buy and sell quotes in the range of 100 billion KRW.

Yoo Ah-ran, a manager at Samsung Asset Management, explained, "As the high-interest-rate phenomenon has prolonged, KODEX CD Interest Rate Active has become a convenient and representative parking product that provides high returns to investors, recording cumulative net purchases by individuals of 1 trillion KRW in just over a year since its listing."