Korea Investment Management Proposes Chuseok ETF Investment Solution with "ACE Hongdongbaekseo"

ETF Solutions Inspired by a Modern Take on "Hongdongbaekseo"

Korea Investment Management announced on September 23 that, in celebration of Chuseok, it is recommending four ACE exchange-traded funds (ETFs) that reinterpret the traditional ancestral rite principle of "Hongdongbaekseo" (Red-East, White-West) as a modern investment strategy.

Korea Investment Management selected four key products under the themes of "Hong" (Red), "Dong" (East/Movement), "Baek" (White/100), and "Seo" (West), inspired by the holiday’s spirit of wishing for a bountiful harvest. These include leading themes in this year’s market, core products for responding to market volatility, and solutions aimed at growing pension assets.

For the "Hong" (Red) category, the company selected the ACE AI Semiconductor TOP3+ ETF, which has posted the steepest gains since the beginning of the year and showed returns in the ‘red’ (upward). According to the Korea Exchange as of the previous day, the ACE AI Semiconductor TOP3+ ETF achieved a return of 131.20%, the highest among ACE ETFs excluding leveraged products. Thanks to this performance, net assets surged more than 781%, rising from KRW 13.36 billion at the start of the year to KRW 117.78 billion. It is analyzed that the fund’s success is due to investments in companies with critical HBM technology and market share in Korea’s AI semiconductor industry, securing the benefits of the ongoing AI cycle.

For the "Dong" (Movement) category, replacing the traditional ‘East’ with ‘Movement,’ the featured active ETF is the ACE Life Asset Shareholder Value Active ETF. Since the start of the year, this product has recorded an excess return of 77.31 percentage points above its benchmark, the highest performance among all domestic active ETFs. Over the past six months and one year, its returns were 45.35% and 133.13%, respectively, beating the benchmark by 46.73 and 93.35 percentage points. The company explained that this active strategy proved effective by selecting large-cap value stocks with high potential for shareholder return expansion and governance improvement during volatile market conditions, aiming for excess returns.

In the "Baek" (White/100) category, spotlighting the number ‘100,’ the recommended product is the ACE US Nasdaq 100 ETF. With individual investors recording a net purchase of KRW 503.6 billion since the start of the year, this product ranked first among ACE products in terms of individual net purchases during the period. Returns for the past one year, three years, and since listing were 20.67%, 108.29%, and 221.72%, respectively. As a representative overseas index product, it has attracted strong demand from investors seeking long-term upward growth in retirement pension accounts and similar frameworks.

The "Seo" (West) category is represented by the ACE US S&P500 US Bond Mixed 50 Active ETF, which combines the key US (Western) index with US Treasury bonds. This ETF attracted KRW 29.6 billion in net individual purchases since the beginning of the year, ranking first among ACE mixed bond ETFs. Returns for the past year, three years, and since listing were 4.35%, 34.19%, and 42.58%, respectively.

Nam Yongsoo, Head of the ETF Division at Korea Investment Management, stated, “Just as a Chuseok ritual table is set with balanced offerings, investors should seek a well-balanced portfolio that considers long-term growth prospects. The four-part 'ACE Hongdongbaekseo' solution incorporates AI semiconductors that have proven their performance since the beginning of the year, active ETFs that delivered outperformance relative to their indices, and US index and mixed bond products suitable for long-term accumulation in retirement pensions—all in one package.”

He added, “Retirement pensions, which are driving significant demand in the ETF market, are long-term investment vehicles, so selecting the right direction and allowing time for the long-term reinvestment effect are both crucial. This Chuseok, I hope investors will review and optimize their ACE ETF portfolios for future growth, and enjoy a more prosperous and meaningful holiday than ever before.”

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