Kiwoom Securities Lists 'Kiwoom KOSPI200 Futures Dollar Exposure ETN'

Kiwoom Securities announced on July 3 that it will newly list the 'Kiwoom KOSPI200 Futures Dollar Exposure ETN' on the Korea Exchange KOSPI market.

This new product is structured to invest simultaneously in KOSPI200 futures and US dollar futures. Its main feature is that it provides exposure to both the leading domestic stock index futures and dollar futures at the same time.

Whereas existing asset allocation products typically split investment amounts, allocating 60% to stocks and 40% to bonds, this product is structured to invest 100% in stocks and 100% in dollars simultaneously. It is also notable for pursuing a more aggressive asset allocation strategy.

The underlying index is the 'KOSPI200 US Dollar Futures Composite Index' calculated by the Korea Exchange. Fluctuations in both the KOSPI200 and the KRW/USD exchange rate are reflected in the product's value. Through this product, investors can effectively invest in both the domestic stock market and the US dollar market at the same time.

With long-term investment in this ETN, when stocks plummet, rising dollar value can partially offset declines in returns, while conversely, when stocks rise, a falling dollar value may reduce the gains from the stock increase. Compared to investing solely in stocks, this approach can reduce volatility and potentially improve risk-adjusted returns over the long term.

The total issuance amount for this newly listed ETN is KRW 7 billion. The maturity date is set for June 26, 2030. Kiwoom Securities will directly provide liquidity and plans to maintain a bid-ask spread within 1%. Investors can freely trade the product on the Korea Exchange KOSPI market just like ordinary stocks. The total annual fee for the product is 0.35%, meaning the cost burden on investors is relatively low. No separate distributions are paid; instead, any returns are reinvested within the underlying index.

A Kiwoom Securities representative stated, "'Kiwoom KOSPI200 Futures Dollar Exposure ETN' is an innovative product that allows simultaneous investment in the leading domestic stock index and the dollar. While it may deliver better results over the long term compared to products investing only in stocks, investors should also be aware that during periods when both the stock market and the KRW/USD exchange rate decline, losses may be greater."

Back in May, Kiwoom Securities also introduced regular and leveraged ETNs that allow simultaneous investment in REITs, real estate, and infrastructure. The company plans to continue discovering and proactively launching differentiated new products in the future.

Detailed information and an investment prospectus for the product are available on the Kiwoom Securities website.