KB Asset Management announced on the 23rd that the net assets of its ultra-short-term exchange-traded fund (ETF) product, ‘RISE Money Market Active ETF,’ surpassed 2 trillion KRW just 1 year and 3 months after its launch.
Amid uncertainty surrounding the timing of interest rate cuts, interest in parking-type products that offer relatively stable returns is increasing, leading to a surge of funds into the ‘RISE Money Market Active ETF.’
Parking-type ETFs serve both as investment standby funds and products seeking short-term returns. They function essentially the same as parking accounts. While bank fixed deposits require the agreed period to be completed to receive full interest, parking-type ETFs can yield annual returns of around 3-4% even with just one day of investment.
In May of last year, KB Asset Management introduced the country’s first money market ETF, the ‘RISE Money Market Active ETF.’ This product invests in ultra-short-term bonds maturing within three months and pursues an active excess return strategy, delivering relatively superior performance even within the same category. The portfolio’s weighted average maturity is managed between 40 to 80 days depending on market conditions. When necessary, it seeks excess returns through additional asset purchases by selling repurchase agreements (RPs). It offers high liquidity and the advantage that investors can redeem funds anytime without being bound by a fixed term.
The returns are also stable. According to the fund rating agency FnGuide as of the 22nd, the one-year return is 4.34%.
Kim Chanyoung, Head of the ETF Business Division at KB Asset Management, said, “In situations of high market uncertainty, it is advantageous to invest in products like parking-type ETFs to generate returns,” adding, “For parking-type ETF investors, it is especially important to compare the product size and management period.”
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