New Market Dynamics: Buffer ETFs and Global Income ETFs
Samsung Asset Management has launched the first buffer ETF in South Korea, making options investment more accessible to retail investors. This product uses a defined outcome strategy that buffers losses and caps returns, marking its first appearance in Asia. It's already gaining traction in the U.S. market and is garnering significant interest domestically. Additionally, covered call ETFs are growing as well, providing a way to partially mitigate losses in declining markets by selling options.
However, although Samsung Asset Management's new buffer ETF is drawing attention following the early liquidation of similar exchange-traded notes (ETNs), concerns linger about its limited returns and complex structure, which may make it difficult to attract investor interest. There is also criticism about the lack of currency hedging mechanisms, which could complicate effective risk management.
Korea Investment Management's 'ACE Global Income TOP10 SOLACTIVE' ETF continues to expand its influence in the market, offering high-yield monthly distributions with notable stability. The ETF consists of the top ten highest-yielding U.S.-listed stocks, showing less volatility than the S&P 500 and Nasdaq 100. Investors have the advantage of tax benefits through retirement plans or ISA accounts, but the fund remains subject to principal loss due to its performance-based nature.
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Korean Investment Management, 'ACE Global Income TOP10' Surpasses 60 Billion KRW in Net Asset Value - EdailyKorea Investment Management announced on the 28th that its exchange-traded fund (ETF), ‘ACE Global Income TOP10 SOLACTIVE’, has surpassed a net asset value of 60 billion KRW. This ETF was launched in July 2023 as a monthly dividend asset allocation product. The underlying index is the ‘Solactive Global Superior Income Top 1...
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Despite 'Zero Loss,' Buffer Type ETN Delisted... Can Samsung Asset Management's New Product Attract Investor Interest? - DailyanThe buffer type exchange-traded note (ETN), which was first introduced in the country, is set to exit the market due to lack of interest. In this context, attention is focused on whether Samsung Asset Management's buffer type exchange-traded fund (ETF), the first of its kind in Asia, can attract investor interest. According to the Korea Exchange on the 28th, four types including 'N2 SP500 Buffer 10% March, June, September, December' will be delisted altogether on the 24th of next month.