IBK Asset Management Launches 'IBK Korea-US Leading Companies TOP2+Bond Hybrid 50 Active ETF'

IBK Asset Management has launched a hybrid active exchange-traded fund (ETF) designed to lower volatility by investing in leading blue-chip companies in Korea and the United States, while also allocating to short-term bonds.

On September 30, IBK Asset Management announced that it listed the 'IBK Korea-US Leading Companies TOP2+Bond Hybrid 50 Active' ETF on September 22.

This product is based on an asset allocation structure consisting of 25% Korean equities, 25% U.S. equities, and 50% domestic short-term bonds. Half of the equity portfolio invests in the top market capitalization companies and next-generation leaders from both Korea and the United States, while the remaining 50% is invested in domestic short-term bonds and monetary stabilization bonds (MSBs), aiming to mitigate risks arising from stock market fluctuations.

The core investment idea of this product is 'long-term investment in industry-leading companies that define their era.' IBK Asset Management emphasized that companies with the highest market capitalization in each period are representative of that era’s key industries and economic paradigms. In fact, the top market capitalization company in the U.S. has shifted over time—from GE, to ExxonMobil, to Microsoft, and now to Nvidia. Likewise, Korea’s leading companies have also changed in line with shifts in industrial structure and market environment. This ETF employs a strategy that reflects these long-term industry changes and new growth trends in its investment, by regularly updating investment targets to align with these transitions.

In particular, the fund adopts an active strategy that goes beyond investing only in current top companies, by identifying and investing early in those likely to become the 'next leaders.' In both Korea and the U.S., the ETF fundamentally holds the largest companies by market capitalization, but it also selects and invests additionally in highly promising companies that rank within the top 10 by market capitalization with strong growth potential.

Within the 25% country-specific equity allocation, approximately 20% can be invested in current top companies, and around 5% in potential next-generation leaders. These next-generation leaders are selected based not only on revenue and operating profit growth but also on factors such as the launch of new products or services and technological innovation. The remaining 50% is allocated to domestic short-term bonds and MSBs, aiming to maintain correlation with the benchmark index while seeking additional returns.

The benchmark index is the 'FnGuide Korea-US Leading Companies TOP2 Bond Hybrid Index,' which allocates 25% each to the largest companies by market capitalization in Korea and the U.S., as well as 50% to domestic short-term bonds. The top companies from Korea and the U.S. are selected based on market capitalization and updated regularly. As a result, if new companies rise to the top of the market in the future, the investment targets will be synchronized accordingly.

An IBK Asset Management official commented, "This ETF is unique in that it invests not only in the current leading companies of Korea and the U.S., but also seeks out promising candidates likely to become future leaders," adding, "By participating in the long-term growth of leading Korean and U.S. companies and offsetting volatility through bonds, it is structured to be suitable for long-term, regular investments and management of pension assets."

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