Rising Popularity of Buffered ETFs and Samsung Asset Management's New Product Launch
Rising Popularity of Buffered ETFs and Samsung Asset Management's New Product Launch
In response to the high volatility of the U.S. S&P 500 Index, investors are increasingly turning to buffered ETFs. These funds are designed to mitigate losses during stock declines, positioning them as a safer investment option. The total net assets of buffered ETFs in the U.S. have grown by over 4 trillion won this year, indicating a significant surge in demand. Samsung Asset Management has announced plans to introduce the first buffered ETF in the Korean market. The 'KODEX U.S. S&P 500 Buffer March Active' ETF will offer a 10% buffer and is currency-exposed. This design highlights the need to consider both market volatility and the impact of exchange rate fluctuations on actual returns. Such an innovative financial product offers Korean investors a broader range of choices, contributing to market diversification and potentially attracting more conservative investors.
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The Wavering Big 3 US Indices... Could Samsung Asset Management's 'Buffer-Type ETF' Be an Alternative? - Korea Financial NewsSamsung Asset Management is preparing to list the first buffer-type exchange-traded fund (ETF) by a domestic asset management company. As the US's top 3 stock markets are experiencing downturns this year, attention is focused on whether it will emerge as an investment alternative. According to the industry on the 14th, Samsung Asset Management plans to list the 'KODEX US S&P500 Buffer March Active' ETF on the Korea Exchange on the 24th. Until now, there haven't been any buffer-type ETFs in the domestic market. A buffer uses option premiums to create a loss mitigation effect within a certain range, and to cover the cost, it caps the upside potential, thus limiting volatility. It is particularly strong in bear markets, making it attractive to conservative investors.