Korea Investment Management: "ACE 25-06 Corporate Bond (AA-or higher) Active ETF to Expire on the 27th"

Korea Investment Management announced on the 23rd that the ACE 25-06 Corporate Bond (AA-or higher) Active Exchange-Traded Fund (ETF) will be delisted on the 25th due to the expiration of its term.

The ACE 25-06 Corporate Bond (AA-or higher) Active ETF is a maturity-matching bond product listed by Korea Investment Management in June 2023. Unlike traditional bond ETFs, maturity-matching bond ETFs are automatically liquidated when the maturity of the underlying asset group is reached. The maturity of the underlying asset group can be identified from the product name. In the case of the ACE 25-06 Corporate Bond (AA-or higher) Active ETF, which is being delisted this time, it included bonds maturing in June 2025.

The benchmark index for the ACE 25-06 Corporate Bond (AA-or higher) Active ETF is the 'KIS Credit 2506 Maturity Type (AA-or higher) Total Return Index.' At the time of listing, the estimated target yield to maturity (YTM) was 4.15%. As of the previous trading day (the 20th), the annualized return since listing was 4.43%, exceeding the target. Since the YTM presented by maturity-matching bond ETFs is not a guaranteed yield, it is important to determine whether the yield can be achieved at maturity.

The redemption payment for the ACE 25-06 Corporate Bond (AA-or higher) Active ETF will be made on the expiration date, which is the 27th. Trading of the product will be suspended from the 24th, and the delisting will take place on the 25th. Investors wishing to trade before maturity must complete their transactions by the 23rd.

The annualized return of the ACE 25-06 Corporate Bond (AA-or higher) Active ETF may fluctuate at the time of delisting, reflecting market conditions and other factors.