New Financial IPO
Mirae Asset Securities will make an IPO of U.S. Buyback ETN(H) with the theme of treasury stock repurchasing on March 3.
Accordingly, the number of products will increase to 11 with the listing of the Mirae Asset U.S. Buyback ETN(H), up from 10 products listed when the ETN market opened in November last year.
The Mirae Asset U.S. Buyback ETN is the first local listed product in Korea that has the theme of treasury stock repurchases based on the S&P 500 Buyback Index as the underlying assets.
The S&P 500 Buyback Index is designed to measure the performance of the top 100 stocks with the highest buyback ratios over the past 12 months in the S&P 500. The S&P 500 Buyback Index is equal-weighted and rebalanced.
In the past year, as of Jan. 30, the S&P 500 Buyback Index had exceeded the S&P 500 Index, which is the benchmark index, by 3.6 percent.
This ETN is designed to be the first product listed in the Korean stock market that follows the basic index, the S&P 500 Buyback Index, regardless of the underlying asset’s currency value fluctuations.
Mirae Asset Securities is forecasting that the product will meet the investment demands of both leading companies in the U.S. and companies which repurchased treasury stocks.
An official from the company said, “In advanced countries, including the U.S., the flow of stock prices of the companies, which reacquired its own shares, is exceeding the earning rate of the market. Therefore, the relevant investments are rapidly on the rise. In Korea, the relevant investment demands are expected to increase from investors, who pursue more than the market profit rate as well.”