This exchange-traded fund (ETF) is designed to provide investors with a return that closely tracks the performance of the Korea Overnight Financing Rate (KOFR), a key short-term interest rate benchmark in South Korea. Essentially, it aims to mimic the returns one might achieve by continuously investing in overnight repurchase agreements, where financial institutions lend and borrow funds for very short periods using government bonds as collateral. Rather than investing directly in these agreements, this ETF utilizes derivative instruments, primarily interest rate swaps, to achieve a similar exposure. By employing this synthetic approach, the fund seeks to efficiently capture the yield associated with the KOFR without directly holding the underlying debt instruments. This allows for easier access to this particular corner of the money market for a broader range of investors who may not have direct access to institutional-level repurchase markets. The ETF’s active management component implies that the fund managers have the ability to slightly adjust the investment strategy within the confines of their stated objective in order to potentially enhance returns or mitigate risks. However, the primary focus remains on delivering returns that closely mirror the movements of the KOFR, providing a liquid and transparent instrument for short-term interest rate exposure within the Korean financial market. It's important to note that while the fund aims to track the KOFR, deviations are possible due to operational costs, derivative trading strategies and market fluctuations. This ETF is therefore most suitable for investors looking to park cash with short-term fixed income exposure and who are familiar with the mechanics of money markets and derivatives.