Korea Investment Management Launches Korea Investment Income Stock ETF Collection Fund

Korea Investment Management announced on the 29th that it has launched the Korea Investment Income Stock ETF Collection Fund for investors interested in EMP (ETF Managed Portfolio) funds.

The Korea Investment Income Stock ETF Collection Fund is the third product in the ETF Collection Fund Series, following the Korea Investment US Nasdaq+ ETF Collection Fund and the Korea Investment Global New Growth ETF Collection Fund. The launch reflects the recent growing interest in income-type products. Jeminjung, Head of Global Quantitative Management at Korea Investment Management, directly selects and manages the exchange-traded funds (ETFs) for the fund. The strategy involves diversifying investments across various ETFs, including covered call, high yield, high dividend, and comprehensive bond ETFs.

The Korea Investment Income Stock ETF Collection Fund is an ultra-diversified investment product that builds a multi-income portfolio by investing in a wide range of ETFs, including ACE ETFs. The fund aims to reduce volatility and pursue stable returns through diversification. The portfolio is composed of 60% of the top ETF group by three-year average distribution yield and 40% of the top ETF group by distribution consistency. By asset class, less than 50% is invested in equities and less than 30% in non-investment grade bonds (such as high-yield bonds), making it possible to invest with a 100% allocation in defined contribution (DC) and individual retirement pension (IRP) accounts.

The ETFs included in the fund will be rebalanced monthly to reflect market conditions. To meet the diverse needs of investors, a total of four sub-funds have been launched: monthly distribution type, reinvestment type, hedged type, and unhedged type. The redemption cycle is set at four business days to enhance liquidity, and the management fee is set at 0.20% per year. The fund is currently available for subscription at Korea Investment & Securities, Kyobo Securities, and KB Securities.

Jeminjung, Head of Global Quantitative Management at Korea Investment Management, stated, "As the high inflation and high interest rate environment continues, the number of income-type ETF products is rapidly increasing." She added, "Even among income-type ETFs, there are differences in returns depending on each product's investment strategy, making it increasingly difficult for investors to select income-type ETFs on their own."

She continued, "The Korea Investment Income Stock ETF Collection Fund is an efficient investment alternative that can resolve the difficulty of choice individual investors may face in the ETF investment process with a single fund. We will focus on selecting and investing in ETFs with high dividend yields and excellent dividend consistency to pursue steady income effects."

The fund is a performance-based product, and past returns do not guarantee future performance. Principal loss may occur depending on the management results.

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