KB Asset Management's RISE Money Market Active ETF Surpasses 3 Trillion Won in Net Assets

The net asset value of KB Asset Management's ultra-short-term exchange-traded fund (ETF), the 'RISE Money Market Active ETF,' has surpassed 3 trillion won. This milestone was achieved just two years after its launch.

Amid uncertainty surrounding the timing of interest rate cuts, investor interest in parking-type investment products, which offer relatively stable returns, has grown. As a result, funds have flowed into the RISE Money Market Active ETF, a representative parking-type ETF.

Parking-type ETFs serve both as a place to hold idle funds and as products that pursue short-term returns, effectively functioning in the same way as parking accounts. While bank time deposits require the full contract period to receive all interest, parking-type ETFs can deliver annual returns of about 3-4% even for just a one-day investment.

In 2023, KB Asset Management introduced Korea's first money market ETF, the 'RISE Money Market Active ETF.' This product invests in ultra-short-term bonds with maturities of less than three months and pursues an active excess return strategy, delivering relatively strong performance compared to other products in the same category.

The fund manages its portfolio's weighted average remaining maturity at around 40 to 80 days depending on market conditions, and seeks additional excess returns by purchasing more assets through the sale of repurchase agreements (RPs) when necessary. It offers high liquidity and allows investors to withdraw funds at any time without being restricted by a fixed contract period.

The performance has also been stable. According to fund evaluation firm FnGuide, the one-year return as of May 26 is 3.68%.

Lee Sujin, head of ETF Product Marketing at KB Asset Management, stated, "In times of high market uncertainty, it is advantageous to invest in products such as parking-type ETFs to generate returns," adding, "The RISE Money Market Active ETF surpassing 3 trillion won in net assets proves the product's strengths in terms of stability, profitability, and liquidity."