Hanwha Asset Management Lowers Total Expense Ratio for Two "PLUS US S&P500" ETFs to 0.0062%

Hanwha Asset Management has reduced the total expense ratio of its US flagship index Exchange-Traded Funds (ETFs) to the lowest level in Korea, aiming to lower investment costs for investors.

On August 28, Hanwha Asset Management announced that it will lower the total expense ratio for its two ETFs, "PLUS US S&P500" and "PLUS US S&P500(H)," to 0.0062% per annum each.

The expense ratio for the PLUS US S&P500 ETF will drop from 0.0700% to 0.0062% per annum, while that for the PLUS US S&P500(H) will be reduced from 0.3000% to 0.0062%. Specifically, the management fee for both products will be reduced to 0.0001%, with designated participant fee at 0.0001%, trustee fee at 0.0050%, and administration fee at 0.0010%.

Based on the total expense ratio, if an investor invests 10 million KRW for one year, the annual cost for the hedged version will decrease from 30,000 won to 620 won, while that for the unhedged version will drop from 7,000 won to 620 won.

Notably, the hedged (H) version—which typically has a higher fee due to the derivative product management costs—will now carry the same total expense ratio of 0.0062% as the unhedged version. As a result, investors can now focus solely on their outlook for the exchange rate when choosing the product, without worrying about fee gaps.

In periods of rising USD/KRW exchange rates (stronger dollar), the unhedged version tends to be more favorable, while in periods of falling exchange rates (stronger won), the hedged version has an advantage. If you expect the US dollar to appreciate or wish to diversify your assets into US dollar denominated assets, the unhedged version is preferable. Conversely, if you anticipate a stronger won or want to track only index performance while avoiding foreign exchange fluctuations, the hedged version would be more appropriate.

Hanwha Asset Management decided to reduce fees in consideration of rising demand for long-term and regular investment, as the S&P500 Index continues to set record highs. The S&P500 Index has remained strong, hitting record closing highs three times in August alone, driven by expectations of interest rate freezes following weaker inflation and employment data.

Jeongseop Geum, Head of ETF Division at Hanwha Asset Management, said, "Although it is impossible to predict the direction of an index, costs are a variable that investors can certainly control. We have set the same cost structure for both the hedged and unhedged products, so that clients who wish to invest in the US flagship index on a long-term and regular basis can choose either product under identical fee conditions."

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