New Developments in the ETF Market
KB Asset Management has announced the listing of the 'RISE Short-term Special Bank Bond Active ETF' on the 24th. This product invests in AAA-rated bonds from the three largest special banks in the country, providing the safety of nearly sovereign bonds. It is expected to yield an additional average interest of 0.2 percentage points, with zero risk-weighted assets, making it an attractive option for investors seeking to maintain financial institution capital health.
Meanwhile, Korea Investment Trust Management has announced the delisting of the ACE 25-06 Corporate Bond (AA- and above) Active ETF. This follows the product's expiration, with redemption payments scheduled for the 27th. The ETF exceeded its initial yield target, providing stable returns to investors up to maturity.
Additionally, according to the financial investment industry, new tax law amendments prohibit reinvestment of interest and dividends for ETFs starting next month. This mandates that both interest-rate-type and derivatives-type ETFs must distribute dividends at least once annually, removing deferred tax benefits and potentially imposing unforeseen tax burdens on investors. Consequently, investors may need to realign their investment strategies and should monitor asset managers' policy shifts closely.
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Interest and Derivative ETFs Also Subject to Mandatory Annual DistributionInterest and derivative ETFs will also be subject to mandatory annual distribution, and starting next month, they may become subject to comprehensive taxation as reinvestment of interest and dividends will be prohibited.
Korea Investment Management 'ACE 25-06 Corporate Bond (AA- or higher) Active, Expiration on the 27th' - meconomynews.comKorea Investment Trust Management announced on the 23rd that the ACE 25-06 Corporate Bond (AA- or higher) Active ETF will be delisted on the 25th due to the expiration of its duration. This product is a maturity matching bond-type product listed by Korea Investment Management in June 2023. Unlike conventional bond-type ETFs, the maturity matching bond-type ETF automatically liquidates upon the maturity of the incorporated asset group. The maturity of the incorporated asset group can be confirmed in the product name. In the case of ACE 25-06 Corporate Bond (AA- or higher) Active, it incorporates bonds maturing in June 2025.
KB Asset Management to list 'RISE Short-term Special Bank Bond Active ETF' on the 24th... Providing government bond-level stability and higher returns - Hans Economy[Hans Economy=Choi Cheon-wook, Reporter] KB Asset Management announced on the 23rd that it will list the 'RISE Short-term Special Bank Bond Active ETF' on the 24th. The 'RISE Short-term Special Bank Bond Active ETF' is the first in Korea to invest in bonds with a 'AAA' credit rating issued by the three major special banks (Industrial Bank, Import-Export Bank, and SME Bank), where the government is the largest shareholder. It is legally possible to offset losses, providing government bond-level stability. An additional interest income of about 0.2%p over national treasury bonds is expected. The 'RISE Short-term Special Bank Bond Active ETF' has a Risk-Weighted Asset (RWA) of 0%.