KODEX Aggregate Bond (AA- and Above) Active (273130) 🔎 In-depth

The reference index is the 'KAP Korea Aggregate Bond Index (Total Return),' calculated by Korea Asset Pricing (KAP). This index broadly covers most bonds issued in Korea; government bonds make up the largest weight at nearly half (about 49% of outstanding issuance), to which are added special bonds, bank bonds, MSBs, high-grade corporate bonds, and the like. This ETF narrows its investment universe to high-grade bonds rated AA- or above, that is, with low default risk. As the 'Total Return (TR)' in the name implies, it reflects performance with the interest from bonds reinvested.

The price of a bond ETF moves mainly with market rates. When market rates fall, the value of already-issued bonds rises and the ETF price rises too; conversely, when rates rise, bond values fall and the ETF price is depressed. How sensitively it reacts is called 'duration' (a concept of average remaining maturity), and because this product holds aggregate bonds with a duration of several years, it reacts more strongly to rate swings than an ultra-short parking product. Added to this is the interest income that accrues each day, which over the long term acts as a cushion. As it holds only domestic bonds, it is unaffected by FX.

Its day-to-day fluctuations are smaller than an equity ETF, but it is different from a deposit with 'guaranteed principal.' In a phase of rapidly rising rates, bond values fall and it can go negative in the short term; conversely, in a rate-cutting phase, price gains can be expected on top of interest. Because it holds only high-grade names to reduce credit risk and is broadly diversified, it is used as the 'bond leg' of an asset allocation that values stability relative to risk. Unlike ultra-short parking products, you should also keep in mind that its value rises and falls with the direction of rates.

On the most recent reference date (2026-07-13), the close was ₩109,825, down a slight -0.15% on the day. AUM (net assets) was about ₩3.8143 trillion, large among domestic bond ETFs, and NAV (net asset value per unit) was about ₩109,822, moving almost in line with the market price. Given the nature of a bond product, its daily swings themselves were not large.

In a word, it is a domestic high-grade bond aggregate set that holds a wide range of sturdy bonds issued by the nation and by high-grade companies and institutions to accumulate interest. It does not swing as much as stocks and acts as a stabilizer for a portfolio, but just remember that its value can dip briefly when market rates rise and that it is not a product with a fixed principal like a deposit.