KB Asset Management Launches 'RISE US S&P500 Yen Exposure ETF'

KB Asset Management announced on the 14th the launch of the exchange-traded fund (ETF) 'RISE US S&P500 Yen Exposure (Synthetic H)', which invests in the US benchmark index 'Standard & Poor's (S&P) 500 Index' in Japanese yen.

By investing in 'RISE US S&P500 Yen Exposure (Synthetic H)', investors can simultaneously enjoy capital gains from US stocks and foreign exchange gains from fluctuations in the yen's value.

Following the earlier launch of 'RISE US 30-Year Treasury Bond Yen Exposure (Synthetic H)', which invests in US long-term bonds in yen, the investment options have been expanded to include the US benchmark index in yen as well.

'RISE US 30-Year Treasury Bond Yen Exposure (Synthetic H)', first launched by KB Asset Management in 2023, has gained popularity among investors expecting yen appreciation, with net assets exceeding 377 billion KRW as of the 11th of this month.

The yen's value has recently become more volatile due to factors such as the Bank of Japan (BOJ)'s potential interest rate hikes and the Liberal Democratic Party's general election defeat, but it is still considered to be at a historically low level. Accordingly, the number of investors expecting foreign exchange gains from yen rebounds alongside fluctuations in the underlying assets is gradually increasing.

'RISE US S&P500 Yen Exposure (Synthetic H)' is managed using a synthetic method. Synthetic ETFs not only best reflect the performance of complex underlying indices but also allow efficient management by tightly controlling liquidity provider (LP) quotes.

Another advantage is that it can be invested in through existing stock accounts, including individual pension and retirement pension accounts, without currency exchange procedures. Investors are exposed to KRW-JPY exchange rate fluctuations without currency exchange fees, allowing for additional profits when the yen appreciates against the Korean won.

Lee Su-jin, Head of ETF Product Marketing at KB Asset Management, said, "This product will be a very efficient option for investors who want to invest simultaneously in the US representative S&P 500 index and the Japanese yen, which is considered to be at a historically low level." He added, "We will continue to launch various products to provide investors with more global investment opportunities."