KODEX Money Market Active Surpasses 1 Trillion KRW in Net Assets

In the ultra-short-term fund management market, Money Market Fund (MMF) ETFs are creating a new trend.

Samsung Asset Management announced on the 5th that the 'KODEX Money Market Active' recorded net assets of 1.0234 trillion KRW just one month after its listing. This appears to be influenced by increased demand for short-term fund management from investors amid heightened market volatility ahead of the U.S. presidential election and expected interest rate cuts. Funds are flowing into ETFs that are recording relatively high yields.

KODEX Money Market Active adopts an MMF management approach by investing in ultra-short-term bonds and CP (commercial paper), minimizing price fluctuation risks due to interest rate changes. It applies more flexible management conditions than traditional MMFs to pursue additional returns. While its portfolio, stock composition, and duration are similar to existing MMFs, unlike MMFs that have restrictions on investment proportions by product, it is not subject to management restrictions and applies market valuation, allowing for additional returns compared to general MMFs.

In the current interest rate environment where bank deposit rates have fallen to the low 3% range, the product’s design to pursue higher yields than general MMFs has attracted investor interest. Since its listing on the 6th of last month, KODEX Money Market Active has recorded an annual yield of 3.81%, outperforming similar ETFs as well as public MMF products. Institutional investor inflows have surged, and individual investors have continued net purchases every day since listing, accumulating net purchases of 11.9 billion KRW in just over a month.

'KODEX Money Market Active' was listed at 100,000 KRW per share, designed to keep investors’ actual transaction costs relatively lower compared to other products. By tightly offering buy and sell LP quotes in 5 KRW increments, the difference between the daily low and high prices since listing has been as little as 5 KRW, effectively reducing actual transaction costs for investors.

Yoon Sung-in, a manager at Samsung Asset Management, said, "With events such as interest rate cuts and the U.S. presidential election increasing stock market volatility, demand for ultra-short-term products with relatively high stability is rising. Since it operates as stably as an MMF while pursuing additional returns, it seems that both institutional and individual investors are actively using KODEX Money Market Active as a short-term investment refuge."

KODEX Money Market Active is a product created by combining Samsung Asset Management’s expertise, which ranks first in both public MMFs and interest rate ETFs. Samsung Asset Management currently holds representative interest rate-linked parking products with net asset sizes of 9.1 trillion KRW, 4.5 trillion KRW, and 1.6 trillion KRW, respectively: ‘KODEX CD Interest Rate Active,’ ‘KODEX KOFR Interest Rate Active,’ and ‘KODEX 1-Year Bank Negotiable Certificate of Deposit+ Active.’ It also manages Samsung MMF Corporate No.1, a leading public MMF fund with assets under management of 12 trillion KRW, holding a total of 23 trillion KRW in public MMFs.