Samsung Securities Lists Two VIX Futures Tracking ETNs

Samsung Securities announced on the 11th that it has listed two Exchange Traded Notes (ETNs) that track the Volatility Index (VIX) futures.

The newly listed ETNs are ▲ 'Samsung S&P500 VIX S/T Futures ETN B' ▲ 'Samsung Inverse 0.5X S&P500 VIX S/T Futures ETN B'. They track the daily returns of the Chicago Board Options Exchange (CBOE) VIX futures at +1x and -0.5x respectively.

These products have the same underlying index as the 'Samsung S&P500 VIX S/T Futures ETN', which can be traded until March 6, 2025, due to maturity, and the 'Samsung Inverse 0.5X S&P500 VIX S/T Futures ETN', which can be traded until March 19.

The VIX is an indicator that reflects the investment sentiment of market participants and represents the expected volatility of S&P500 index options traded on the options exchange. The ETN that tracks VIX futures at +1x can expect profits when market volatility increases. The ETN that tracks VIX futures at -0.5x can expect profits when market volatility eases.

The ETNs listed this time are currency-exposed products that are subject to exchange rate risk between the Korean won and the US dollar. The ETN management fees (expenses) are 1.20% per annum for 'Samsung S&P500 VIX S/T Futures ETN B' and 0.45% per annum for 'Samsung Inverse 0.5X S&P500 VIX S/T Futures ETN B'.

Unlike Exchange Traded Funds (ETFs) that have no maturity as long as the fund is not liquidated, the 'Samsung S&P500 VIX S/T Futures ETN B' issued by Samsung Securities this time is an ETN product with a maturity date of March 12, 2027. It can be traded until March 10, 2027.

A Samsung Securities official stated, “We have launched ETN products that invest in market volatility,” adding, “These products can respond to both phases of volatility expansion and contraction.”