KB Securities announced on September 3 that it will newly list the "KB Inverse 2X Natural Gas Futures Exchange-Traded Note (ETN) B," which invests in natural gas futures listed on the New York Mercantile Exchange (NYMEX), on September 4.
Recently, the natural gas market has seen increased short-term price volatility due to a variety of factors, including seasonal supply and demand changes, fluctuations in international oil prices, weather conditions, and geopolitical risks. As a result, investors' interest in inverse products that can respond to short-term downward trends has been growing.
The KB Inverse 2X Natural Gas Futures ETN B is structured to track twice the inverse (-2x) of the daily returns of natural gas futures listed on the NYMEX in the United States. Its underlying index is the "Bloomberg Natural Gas Single 2X Inverse TR." This product allows investors to profit when natural gas prices fall, but conversely, losses are doubled if prices rise, making it a high-risk, high-volatility product.
In addition to the performance of natural gas futures, the product is also exposed to fluctuations in the US dollar exchange rate, making it a currency-exposed product. The annual management fee is 0.75%, and the maturity is five years, allowing trading until August 26, 2030, after which it will be delisted.
Kim Byungkoo, Head of Passive Sales Division at KB Securities, stated, "We are launching this product to meet the demand of investors in natural gas ETNs that are scheduled for delisting due to maturity and to provide an opportunity to respond to the highly volatile natural gas market. Investors will be able to continue utilizing their existing strategies and respond flexibly to the rapidly changing commodity market."
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