Hantoo Asset Management ACE Bond Mixed Series Surpasses 700 Billion KRW in Net Asset Value

Korea Investment Trust Management announced on the 17th that the net asset value of the ACE bond-mixed exchange-traded fund (ETF) series, which invests in U.S. stocks and bonds, has surpassed 700 billion KRW.

The three bond-mixed ETFs held by Korea Investment Trust Management are ▲ ACE U.S. S&P 500 Bond-Mixed Active ETF ▲ ACE U.S. Nasdaq 100 Bond-Mixed Active ETF ▲ ACE NVIDIA Bond-Mixed Bloomberg ETF. According to the Korea Exchange, as of the 14th, the combined net asset value of the three ETFs was 700.9 billion KRW.

The product with the largest net asset value is the ACE U.S. S&P 500 Bond-Mixed Active ETF, which was listed in August 2022. It is characterized by investing in the S&P 500 index and U.S. short-term bonds at a 3 to 7 ratio. The benchmark index is the 'S&P 500 and Short-Term Treasury 30/70 Blend Index.'

The ACE U.S. Nasdaq 100 Bond-Mixed Active ETF was also listed in August 2022. It maintains a 3 to 7 ratio between stocks and U.S. short-term bonds. The difference is that the stock assets invested are based on the Nasdaq 100 index. The benchmark index is the 'NASDAQ 100 US T-Bills 30/70 Index.'

The ACE NVIDIA Bond-Mixed Bloomberg ETF was listed in November 2022 and invests in NVIDIA and domestic bonds at a 3 to 7 ratio. As a single-stock type ETF, it is notable for having the highest proportion of NVIDIA individual stock investment among domestically listed ETFs. The underlying index is the ‘Bloomberg Blended NVIDIA Equity and Korean Bond Total Return Index.’

The advantage of these three products is their low volatility. By investing in bonds, which have a low correlation with stocks, they tend to record relatively smaller declines compared to individual stocks and equity ETFs when market volatility increases. Since they allocate a large proportion to bonds, which are classified as safe assets, they can be invested up to 100% in defined contribution (DC) retirement pension and individual retirement pension (IRP) accounts.

Nam Yong-su, Head of ETF Management at Korea Investment Trust Management, said, "The three ACE bond-mixed ETFs are good products to include in portfolios during periods of increased market volatility like recently," and added, "Because they invest in high-growth U.S. stocks together with bonds, they experience less downward pressure compared to individual stocks or equity ETFs even during extreme volatility or bear markets."

All three mentioned ACE ETFs are performance-distributing products, and principal loss may occur depending on the management results.

This content was produced with the assistance of AI translation services.