KB Securities, one of Korea’s leading securities firms, today listed three new Exchange Traded Notes (ETNs) linked to natural gas on the Korea Exchange (KRX).
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Article created by the editorial staff of ETFWorld.co.uk
The three instruments track Solactive indices that follow Henry Hub natural gas futures contracts traded on the NYMEX, and offer differentiated exposure for bullish, bearish and leveraged directional strategies.
The three products
The three ETNs, denominated in South Korean won and with a five-year maturity, are:
- KB Solactive Natural Gas Futures ETN (ticker 580085.KS): tracks the daily performance of the Solactive Natural Gas Total Return T-Bill 1x Long Leverage Index, offering linear (1x) exposure to natural gas futures.
- KB Solactive Leverage Natural Gas Futures ETN (ticker 580086.KS): tracks the Solactive Natural Gas Total Return T-Bill 2x Long Leverage Index, with a leverage factor of 2x on the daily performance of the underlying asset.
- KB Solactive Inverse Natural Gas Futures ETN (ticker 580087.KS): tracks the Solactive Natural Gas Total Return T-Bill 1x Short Leverage Index, providing inverse (-1x) exposure to the daily performance of the futures.
The three ETNs were listed on 30 April 2026 on the Korean KRX market. KB Securities specified that the launch coincided with the expiry of a previous series of natural gas ETNs, with the aim of ensuring continuity for investors wishing to maintain or renew their positions without interruption.
Structure and costs
All three ETNs are structured as senior unsecured debt securities issued by KB Securities Co., Ltd. and, as such, expose the investor to the issuer’s credit risk. They do not provide currency hedging: performance is influenced by movements in the won/dollar exchange rate. The maturity is set at 5 years from the issue date, and the products can be traded on the secondary market during Korean trading hours.
Below are the annual costs (total expense ratio) as reported by KB Securities:
| ETN | Ticker | Leverage | Annual TER |
| KB Solactive Natural Gas Futures ETN | 580085.KS | 1x | 0.58% |
| KB Solactive Leverage Natural Gas Futures ETN | 580086.KS | 2x | 0.79% |
| KB Solactive Inverse Natural Gas Futures ETN | 580087.KS | -1x | 0.60% |
The data is taken from press releases issued by the company on 29 April 2026.
The Solactive indices
The three ETNs are linked to indices from the Solactive Natural Gas Total Return T-Bill Leverage family, calculated by the German index provider Solactive AG. These indices are derived from the Solactive Future Series 5-Day Roll Henry Hub Natural Gas Excess Return USD Index, which in turn replicates continuous exposure to Henry Hub futures contracts traded on the NYMEX via a fortnightly roll mechanism.
To this excess return component, the indices add a rate of return based on short-term US Treasury bills (T-Bills), thereby achieving a total return. Leverage factors (1x, 2x, -1x) are then applied daily on this basis. Solactive describes the methodology as transparent and based on fixed rules, with no discretion on the part of the manager.
The natural gas landscape
Natural gas remains a central component of the global energy mix, used for heating, industrial processes and electricity generation. Demand for electricity is growing, partly due to the expansion of data centre infrastructure linked to artificial intelligence, a factor that has reignited investor interest in flexible energy sources.
According to the latest forecasts from the U.S. Energy Information Administration (EIA), the average annual price of Henry Hub gas in 2026 is expected to stand at around $3.67 per million BTU, a slight decline compared to 2025, as increased production offsets rising demand. The EIA estimates that US marketed gas production will grow by 2% in 2026 and 3% in 2027, whilst LNG exports will reach a record 17 billion cubic feet per day during 2026.
Price volatility remains high, however: at the end of April 2026, the Henry Hub futures contract stood at around $2.91/MMBtu, with a 52-week range of $2.65 to $6.01, a sign that the commodity remains subject to significant fluctuations linked to seasonal, geopolitical and supply factors.
The regulatory framework and the issuer
KB Securities Co., Ltd. is one of Korea’s leading brokerage firms, a subsidiary of KB Financial Group (KRX: 105560). The company has an established presence in the ETN and structured products market.
The launch comes against a backdrop of a gradual expansion of the range of commodity ETNs in Korea. In September 2025, Hana Securities and Meritz Securities had already listed similar products based on the same Solactive indices, a sign of growing interest in tactical strategies for natural gas. In recent months, the Korean financial authorities have also initiated a regulatory review process to align the domestic framework with international standards regarding leveraged ETFs and ETNs.
Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “Natural gas remains a closely watched commodity, as evolving global energy demand and market volatility create tactical opportunities for investors. We are delighted to partner with KB Securities on the launch of these ETNs, which offer the Korean market transparent and differentiated access to long and short exposure on natural gas.”
Conclusions
With this issue, KB Securities brings the number of Korean issuers offering ETNs linked to the Solactive natural gas index family to three. The three new products allow investors to take a linear position, with 2x leverage or in inverse mode, on an underlying asset characterised by structurally high volatility, in an exchange-traded format. The 5-year maturity, the absence of currency hedging and the issuer’s credit risk are the structural elements to consider for those evaluating these instruments.
Source: ETFWorld.co.uk
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