KB Asset Management's Three 'RISE TDF ETF' Products Surpass 400 Billion Won in Net Assets
KB Asset Management announced on August 20 that the net assets of its three 'RISE TDF ETF' products, which combine the asset allocation function of target date funds (TDF) with the trading convenience of exchange-traded funds (ETF), have surpassed 400 billion won.
KB Asset Management established its lineup of TDF ETFs that allocate investors’ assets in accordance with their planned retirement date by sequentially launching the RISE TDF2030, RISE TDF2040, and RISE TDF2050 Active Qualified ETFs in 2022. All three products apply a low total expense ratio of 0.01% per annum and diversify investments into ETFs related to domestic and international stocks, bonds, and alternative assets.
This product implements the glide path asset allocation strategy of TDFs in ETF form, increasing the proportion of risky assets such as stocks in the early stages of a lifecycle and gradually increasing the weight of safer assets such as bonds as retirement approaches. The allocation to risky assets is set between 55% and 78%. Investors can select from RISE TDF2030, RISE TDF2040, or RISE TDF2050 according to their target retirement year.
Unlike general public offering TDFs, intraday real-time trading is possible just like with stocks, and the settlement cycle also matches that of Korean equities at T+2 days. According to FnGuide, as of August 19, the one-year and three-year returns of the RISE TDF2050 Active Qualified product reached 25.36% and 67.92%, respectively, indicating outstanding long-term performance.
In addition, these products can be included up to 100% in defined contribution (DC) retirement pension accounts and individual retirement pension (IRP) accounts, enabling investors to utilize an asset allocation strategy tailored to their retirement schedule with a single product.
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Yook Donghwi, Head of ETF Product Marketing at KB Asset Management, explained, "The RISE TDF ETF is a product that combines the advantages of ETFs, such as low fees and real-time trading, with the automatic asset allocation function of TDFs. Investors can more conveniently invest in pensions since asset allocation is automatically adjusted according to the retirement date, without needing to manually adjust the proportion of stocks and bonds in response to market conditions."
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