Dollar Parking ETFs Attracting Attention in High Exchange Rate Era
Amidst the current trend of high exchange rates, 'dollar parking' Exchange Traded Funds (ETFs) that facilitate investment in dollar assets are garnering significant interest from investors. Notably, Samsung Asset Management's 'KODEX U.S. Money Market Active' and 'KODEX U.S. SOFR Interest Rate Active' ETFs are in the spotlight, with their combined net assets surpassing 1 trillion won. This popularity is attributed to their strategy of providing monthly dividends while aiming for high returns and stability.
The KODEX U.S. Money Market Active offers an expected annual return of 4.33%, while the KODEX U.S. SOFR Interest Rate Active expects a return of 3.95% linked to the SOFR rate. These ETFs are emerging as alternative investment options for investors looking to capitalize on dollar exchange gains amidst volatile currency markets. Against this backdrop, the two ETFs have firmly established themselves as essential tools for asset allocation strategies, leveraging the advantages of dollar over Korean won investments.
This growth trend is not just about monetary gains through returns and dividends, but also represents a hedge against the risks associated with high exchange rates. Demand for dollar-based financial products is continuously increasing as a way to mitigate potential losses from exchange rate fluctuations. Consequently, the surge in popularity of these ETFs underscores the agile response of domestic investors to global economic changes.
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Samsung Asset Management's Dollar Parking Type ETFs Surpass 1 Trillion Won in Net Assets - Whitepaper[Whitepaper=Reporter Ko Soo-ah] Dollar parking type ETFs, which allow investment in dollars during high exchange rate periods, are gaining attention as a new investment avenue. Samsung Asset Management announced on the 18th that KODEX US Money Market Active and KODEX US SOFR Rate Active have recorded net assets of 502.6 billion won and 508.1 billion won respectively, surpassing a combined net asset value of 1 trillion won. The US Federal Reserve's upper interest rate remains in the 4% range, and amidst growing global economic uncertainty, the preference for safe assets combined with a strong dollar outlook is emerging as a new investment alternative. Both ETFs invest in dollar assets while providing monthly dividends.
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