Rise in Dollar ETF Yields and Samsung Asset Management's Market Dominance
Rise in Dollar ETF Yields and Samsung Asset Management's Market Dominance
The persistent strong dollar phenomenon is leading to increased yields for dollar futures investment ETFs and SOFR rate-linked ETFs. As the volatility of the USD/KRW exchange rate rises, investors are increasingly favoring currency-exposed ETFs, thereby widening yield disparities. For instance, U.S. Dollar Futures Leverage ETF yields have surged over 5%, garnering significant investor attention. Samsung Asset Management's KODEX U.S. Money Market Active and KODEX U.S. SOFR Rate Active ETFs have each reached net assets of 5.026 trillion and 5.081 trillion KRW, together surpassing the 1 trillion mark. This is attributable to the opportunity to achieve currency gains by investing in dollar assets, coupled with the allure of monthly dividends. Notably, the KODEX U.S. Money Market Active offers an attractive expected yield of 4.33% per annum, making it a compelling choice. It diversifies investments across various short-term financial products to mitigate risks. Conversely, KODEX U.S. SOFR Rate Active is popular among risk-averse investors by providing a real-time yield linked to SOFR, at an annual rate of 3.95%. Manager Shin Hyun-jin expressed that during periods of dollar strength, the appeal of these short-term dollar investment products rises, with monthly dividends receiving positive responses from investors. This trend is likely to continue as long as the strong dollar persists.
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[Exchange Rate Pivot] "Currency Technology Gone Mad with High Exchange Rates"···Dollar Futures and Currency-Exposed ETF Yields Soar - NewsPim[Seoul=NewsPim] Reporter Kim Yeon-soon = As the strong dollar phenomenon continues, the movement of capital into currency technology products among investors is becoming starkly evident. The returns of dollar futures investment exchange-traded funds (ETFs) are soaring, and among ETFs investing in major US indices, currency exposure (exposure to exchange rate volatility) products are overshadowing currency-hedged (exchange rate