KODEX Money Market Active, Top Individual Preference for Parking-Type ETF This Year

Samsung Asset Management's 'KODEX Money Market Active ETF' is gaining attention as an ultra-short-term fund management option, leading a new paradigm in the parking-type ETF market.

Samsung Asset Management announced on the 11th that individual investors have net purchased 163.4 billion KRW of the KODEX Money Market Active ETF this year, making it the top parking-type ETF. Including institutions, the total fund inflow reached 1.837 trillion KRW, ranking first among all ETFs.

The KODEX Money Market Active ETF is designed based on the MMF (Money Market Fund) management method, investing in ultra-short-term bonds and commercial paper (CP). It minimizes price fluctuation risks due to interest rate changes while adopting a more flexible management approach compared to traditional MMFs, allowing for additional returns. Although its portfolio, stock composition, and duration (weighted average maturity) are similar to those of existing MMFs, it has relatively fewer operational restrictions compared to traditional MMFs, which have limits on holding proportions per investment product. Because it applies market valuation, it can achieve higher returns than general MMFs.

The net assets of the KODEX Money Market Active ETF amount to 5.8598 trillion KRW, making it the third largest among 962 ETF products. It is the largest not only among similar money market active ETFs but also among short-term fund parking-type ETFs.

With the benchmark interest rate lowered to around 2.75% per annum, it can pursue higher returns than general MMFs. In highly volatile markets, it strictly limits products to high-credit-quality credits to minimize risk. Since its listing in August last year, the KODEX Money Market Active ETF has recorded an annualized return of 3.61%.

Yoon Sung-in, a manager at Samsung Asset Management, explained, "As the US-China tariff war intensifies and global stock market volatility increases, investor demand for stable parking-type products is growing," adding, "The KODEX Money Market Active ETF is less affected by market interest rate fluctuations." He emphasized, "Because it is subject to relaxed regulations compared to MMFs and applies market valuation, it is a product that can generate additional returns in a declining interest rate environment."

Since it can be held up to 100% within pension accounts (DC, IRP), it is attracting attention as a refuge for standby funds during periods when portfolio adjustments are necessary.