How to Invest Pension Funds in Volatile Markets... ACE ETFs Tracking Leading U.S. Indices in Focus

Long-Term Upward Trend Amid Heightened Market Volatility
Equity and Balanced ETF Lineup Established

Amid heightened volatility across global markets, "investing in leading U.S. indices" is drawing attention. The view is that, particularly for long-term funds such as pensions, success depends on consistently investing in high-quality U.S. assets through regular contributions rather than pursuing short-term investments.

On October 21, Korea Investment Management Co., Ltd. recommended two core equity exchange-traded funds (ETFs) and two balanced stock-and-bond ETFs focused on leading U.S. indices. ACE US Nasdaq 100 and ACE US S&P 500 provide 100% exposure to innovative U.S. technology stocks and the broader market, respectively, to maximize potential returns.

ACE US Nasdaq 100 US Treasury Bond Balanced 50 Active and ACE US S&P 500 US Treasury Bond Balanced 50 Active combine leading U.S. equities (50%) with U.S. bonds (50%). The two products are classified as statutory safe assets within defined-contribution (DC) and individual retirement pension (IRP) accounts, allowing investors to allocate up to 100% of their accounts to them.

ETFs tracking leading U.S. indices offer defensive strength during market corrections while delivering strong returns that can support long-term investment performance. According to the Korea Exchange, the ACE US Nasdaq 100 ETF returned 93.52% over the past three years and 201.76% since its listing, capturing the performance of leading technology stocks. The ACE US Nasdaq 100 US Treasury Bond Balanced 50 Active ETF also returned 37.69% over three years and 49.71% since listing, combining stable interest income from government bonds with a sustained long-term upward trend.

Nam Yongsoo, head of the ETF Division at Korea Investment Management Co., Ltd., said, "By complementarily allocating equity ETFs tracking leading U.S. indices with clear growth prospects alongside a lineup of U.S. bond-mixed 50% ETFs optimized for asset allocation and retirement pension investing, investors can expect both long-term stability and performance in their pension accounts."

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