Recently, the growth of global eco-friendly industries such as electric vehicles and energy storage systems (ESS), along with increasing demand for electric vehicle batteries, has led to greater stock price volatility in secondary battery-related sectors. As a result, there is a growing interest in leveraged products among investors seeking short-term returns.
In line with these market trends, KB Securities has launched the KB Leverage Secondary Battery TOP 10 TR ETN to enable investors to actively respond to short-term volatility in the domestic secondary battery industry.
This Exchange-Traded Note (ETN) uses the KRX Secondary Battery TOP 10 TR Leverage Index as its underlying index. The index is designed to track twice the daily return of the KRX Secondary Battery TOP 10 TR Index. Notably, since it is based on a total return index, it includes not only capital gains from stock price fluctuations but also cash dividend income from the constituent stocks. When dividends are paid, the dividend income is also reinvested into the index at twice the rate due to leverage.
The annual management fee for this newly listed product is 0.99%, and its maturity is 10 years, allowing it to be traded until July 17, 2035, after which it will be delisted.
Kim Byunggu, Head of Passive Sales at KB Securities, stated, "The secondary battery industry is a key sector in the era of energy transition, and investor demand in this field continues to grow. We are launching this new listing to meet the investment demand for secondary battery ETNs that have been delisted due to maturity, as well as to respond to market demand for leveraged products. KB Securities will continue to introduce a variety of products tailored to investor needs in the future."
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