Samsung Asset Management celebrates ETF trading in U.S.

[Courtesy of Samsung Asset Management Co.]

South Korea’s Samsung Asset Management Co. has debuted its homegrown exchange-traded fund (ETF) on the U.S. stock market, with hopes to expand its global presence.

Samsung Asset Management announced that it participated in the opening bell ceremony for the Amplify Samsung SOFR ETF (SOF) in New York on Monday, local time.

The ETF was launched in collaboration with U.S. ETF specialist Amplify Asset Management LLC, on the New York Stock Exchange in November 2023.

The ETF mirrors the structure of the Kodex USD SOFR Active(SYNTH) ETF, which seeks to outperform the daily performance of the Bloomberg Secured Overnight Financing Rate (SOFR) Daily Total Return Index by mainly investing in OTC derivative products as its major investment asset.

The SOF tracks the performance of the SOFR index. Given that SOFR is calculated daily based on data from one-day repurchase agreement (RP) transactions supported by U.S. Treasuries, the SOF serves as a dollar-based ETF, enabling investors to accrue daily ultra-short-term interest rates of five percent per annum without capital loss.

The financial product boasts net assets of about 200 billion won ($145 million), with a threefold increase since its listing.