April 24, 2024
Finance
ETN market shows rapid growth
[THE INVESTOR] South Korea’s stock market operator stated on Nov. 24 that the nation’s exchange-traded notes market has sharply expanded since its creation two years ago.
According to the Korea Exchange, the market size has grown to 3.3 trillion won (US$2.80 billion) from 466.1 billion won in 2014 as the number of listed products jumped to 130 from 10 at the time of its debut.
The number of accounts held by ETN investors soared to 19,740 from 698 and the average daily turnover of ETNs came to 23.2 billion won over the past two years.
ETNs are a type of unsecured debt security tracking the performance of various market benchmarks. Similar to bonds and exchange traded funds, ETNs are traded on the main exchange during normal trading hours.
Despite the growth of the market, the KRX said, it leaves much to be desired for marketing and balanced trading.
There is a need to step up efforts to raise public awareness of ETNs and reduce the market’s dependence on a small number of products issued by large brokerage firms, added the bourse.
(theinvestor@heraldcorp.com)
According to the Korea Exchange, the market size has grown to 3.3 trillion won (US$2.80 billion) from 466.1 billion won in 2014 as the number of listed products jumped to 130 from 10 at the time of its debut.
The number of accounts held by ETN investors soared to 19,740 from 698 and the average daily turnover of ETNs came to 23.2 billion won over the past two years.
ETNs are a type of unsecured debt security tracking the performance of various market benchmarks. Similar to bonds and exchange traded funds, ETNs are traded on the main exchange during normal trading hours.
Despite the growth of the market, the KRX said, it leaves much to be desired for marketing and balanced trading.
There is a need to step up efforts to raise public awareness of ETNs and reduce the market’s dependence on a small number of products issued by large brokerage firms, added the bourse.
(theinvestor@heraldcorp.com)
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