KODEX US 30-Year Treasury Active (H) ETF Surpasses 500 Billion KRW in Net Assets

Due to factors such as Moody's downgrade of the U.S. sovereign credit rating, the yield on the U.S. 30-year Treasury bond recently surpassed 5% for the first time since October 2023. As a result, the investment appeal of long-term U.S. Treasuries has increased, leading to a significant inflow of investment funds.

On the 26th, Samsung Asset Management announced that the net assets of the 'KODEX US 30-Year Treasury Active (H) ETF' have surpassed 500 billion KRW. This appears to be due to the sharp rise in U.S. Treasury yields, which has enhanced the attractiveness of such investments.

KODEX US 30-Year Treasury Active (H) is the Korean version of the long-term U.S. Treasury 'TLT' ETF favored by domestic investors. It is managed by investing in physical U.S. 30-year Treasury bonds and pure U.S. 30-year Treasury ETFs listed in the United States. This product features currency hedging to eliminate exchange rate risk, and investors can receive monthly dividends. It is evaluated as having both investment stability and profitability, as capital gains can be expected if interest rates fall. When Treasury yields decrease, significant capital gains are possible, and even if yields do not fall, investors can still receive high interest income.

The total fee is approximately 0.015% per year, which is the lowest among similar products. By excluding high-cost leveraged ETFs from its investment methods, it prevents negative compounding effects or excessive indirect investment costs from being passed on to investors. As it is not operated as a synthetic product, there are no swap costs. The ETF adopts a simple indirect structure that minimizes actual costs, resulting in high management efficiency.

Thanks to this efficient structure, individual investors have accumulated net purchases amounting to 182 billion KRW, and net purchases through banks have reached 153.8 billion KRW. If the amount purchased through retirement pension plans, which is not included in the tally, is added, the total cumulative purchases by individual investors are estimated to be even larger.

Yu Aran, a manager at Samsung Asset Management, explained, "This product is designed to closely track the performance of the US 30-year Treasury bond while building a cost-efficient portfolio, staying true to investment fundamentals," and added, "It serves as an excellent investment tool for taking advantage of the unusually high interest rate environment."

KODEX US 30-Year Treasury Active (H) is expected to continue attracting investors, as it is projected to offer an attractive annual dividend yield in the 4-5% range, reflecting the current yield to maturity (YTM) of US 30-year Treasuries. This ETF can be invested in up to 100% through retirement pension (DC, IRP) and pension savings accounts.