Samsung Asset Management Lists New KODEX US Money Market Active ETF

Samsung Asset Management has launched Korea's first U.S. money market ETF that simultaneously invests in ultra-short-term safe assets in the U.S. and in the U.S. dollar. The product is being evaluated as a high-interest parking-type product, offering the lowest costs and the highest distribution rate among similar products.

On May 13, Samsung Asset Management announced the new listing of the 'KODEX US Money Market Active' ETF. This expands the lineup of money market-related products following the 'KODEX Money Market Active,' a won-denominated parking-type product that was listed in August last year and, as of May 9, has grown to 6.2516 trillion won in net assets. Amid ongoing market volatility triggered by the U.S.-led tariff war, investors can now choose to invest their short-term funds in either the Korean or U.S. money market.

KODEX US Money Market Active is an investment product that seeks to offer higher interest rates than the U.S. base rate while also providing monthly dividends. The current U.S. base rate is 4.5% per annum, which is 1.75 percentage points higher than Korea's rate of 2.75% per annum. The benchmark index comprises U.S. Treasury bonds with maturities of 1 to 3 months, U.S. 7-day repurchase agreement (repo) rates, and the U.S. Secured Overnight Financing Rate (SOFR). In addition, the ETF includes some U.S. agency bonds, financial bonds, and corporate bonds with a global credit rating of A- or higher, aiming to deliver yields above the benchmark index.

The annual distribution rate is expected to be around 4.7% based on the yield to maturity (YTM), which is the highest among similar products listed in Korea. The ETF will accumulate the won-converted interest rate, reflecting the daily USD/KRW exchange rate on the dollar asset interest, and distribute it at the end of each month.

Minimizing investment costs is also a key strength. The total expense ratio is 0.05% per annum, the lowest among similar products. By investing directly in U.S. money market physical bonds, rather than using a fund-of-funds structure that incorporates existing ETFs, there are no additional costs beyond the total expense ratio.

KODEX US Money Market Active allows investors to invest directly in the U.S. money market without the need to exchange won for dollars. Notably, this is the first ETF to set its price at the USD/KRW exchange rate level. The price per ETF share is set at around $10, allowing customers to intuitively understand their returns. For example, if the USD/KRW exchange rate is 1,420 won, the listing price per share would be 14,200 won. After distributing the accrued interest each month, the share price returns to the $10 level, reflecting the exchange rate. Holding 100 shares is designed to provide an investment experience similar to holding $1,000, and 1,000 shares would be similar to holding $10,000.

Shin Hyunjin, a manager at Samsung Asset Management, stated, "KODEX US Money Market Active is Korea's first U.S. money market ETF, introduced by Samsung Asset Management, the leader in money market ETFs. It is suitable for U.S. stock investors who wish to manage volatility by investing in U.S. bond assets."