Samsung Asset Management: KODEX Money Market Active ETF Sees 532.5 Billion Won in Net Individual Purchases Since Year Start

As the Korean won strengthens and market volatility increases, funds are increasingly flowing into parking-type exchange-traded funds (ETFs) that enable flexible cash management, as well as into dollar-denominated short-term bond ETFs based on safe assets.

On August 19, Samsung Asset Management announced that the KODEX Money Market Active ETF had recorded a cumulative net purchase of 532.5 billion won by individual investors since the beginning of the year, ranking first among parking-type ETFs in terms of net purchases by individuals. During the same period, its net asset value increased by approximately 1.2482 trillion won to reach a total of 7.9774 trillion won, making it the largest parking-type ETF in Korea. Since its listing in August 2024, cumulative net purchases by individual investors have reached as much as 1.3128 trillion won.

The KODEX Money Market Active ETF is designed based on the operational methodology of money market funds (MMFs) that invest in high-credit liquidity assets such as ultra-short-term bonds and commercial paper (CP). To minimize price volatility caused by interest rate movements and market fluctuations, the fund strictly limits its investment universe and builds its portfolio primarily with highly rated short-term assets, thereby enhancing stability.

This ETF is also eligible for 100% allocation in individual retirement accounts (IRP, DC), making it an attractive alternative for managing idle funds within retirement portfolios for individual investors.

With global geopolitical uncertainties continuing, demand to invest in safe-haven assets like the US dollar remains strong, leading to continuous inflows into ETFs such as the "KODEX US Money Market Active ETF," which invests in US ultra-short-term bonds. The KODEX US Money Market Active ETF invests in dollar-denominated assets and high-grade short-term financial instruments in the United States. Unlike strategies that invest solely in US Treasuries, this ETF strategically diversifies investments across various short-term financial products including highly rated financial and corporate bonds (from AAA to A- rating). In the past three months, individual investors have net purchased 28.4 billion won, while net assets have grown by 91.3 billion won over the same period.

Hyunjin Shin, manager at Samsung Asset Management, said, "The KODEX US Money Market Active ETF may offer investors an efficient way to manage their dollar-denominated idle funds, as it enables investment in the US dollar as well as in high-grade short-term financial assets like US ultra-short-term bonds."

This content was produced with the assistance of AI translation services.