RISE Aggregate Bond (A- and Above) Active (385540) 🔎 In-depth

The comparison basis (benchmark index) is the 'KIS Aggregate Bond Index (A- and above) (Total Return),' calculated by KIS Pricing. This index holds about 5,000 domestic bonds with an outstanding issue size above a certain level (about ₩50 billion) and a credit rating of A- or above, making it an 'aggregate' bond index. It spans a broad range, from public bonds such as Korea Treasury Bonds, Monetary Stabilization Bonds, local-government bonds and special bonds, to bank and financial bonds, and on to high-quality corporate bonds rated A- and above, connecting government debt through to credit bonds. The term 'Total Return' means the index is calculated reflecting not only bond price changes but also the interest received and the reinvestment income from putting that interest back to work.

As a bond ETF, it does not rise and fall sharply within a day like an equity fund; it is mainly driven by which way market interest rates move. Bonds fall in value when rates rise and rise in value when rates fall, and with an average maturity of about 5.6 years this ETF is intermediate, so it is somewhat sensitive to rate changes (the longer the maturity, the bigger the reaction to rates). Added to this is the interest income the bonds it holds accrue each day, so when rates do not move much, it tends to rise gently by roughly the amount of that interest. Because these are domestic won-denominated bonds, it is not affected by the exchange rate.

This is a low-volatility bond ETF suited for asset allocation. It is diversified across thousands of bonds, carries a large weight of public bonds, and includes only corporate bonds rated A- and above, keeping credit risk on the lower side, so it is often used to cushion the swings of a portfolio with a large equity weight. Its management fee is also very low, around 0.012% per year. That said, it is not a principal-guaranteed product; if market rates rise quickly, bond values fall and short-term losses can occur, and because high-grade corporate bonds are mixed in, it carries a little more credit-related risk than a fund that holds only government bonds.

In the first half of 2026 the Bank of Korea's base rate was held unchanged in several consecutive decisions at 2.50% per year; over this period short-term (3-year) Korea Treasury Bond yields were almost flat, while long-term (10-year and over) Korea Treasury Bond yields rose slightly. As a result, this ETF, with an average maturity of about 5.6 years, saw accruing interest income and the price decline from rising long-term yields offset each other, and it was almost unchanged at -0.12% on July 13, 2026. Per the manager's disclosure, the yield to maturity (YTM, the approximate annual return level if the currently held bonds are held to maturity) is about 4.57%.

In short, it is a bond basket that broadly holds public bonds plus high-quality corporate bonds and steadily collects interest. It does not swing sharply like stocks and moves gently along with interest-rate trends; just keep in mind that its value can dip briefly if market rates rise abruptly.