[Asia Economy Reporter Junho Hwang] A path has opened to invest in representative index exchange-traded funds (ETFs) such as the US S&P500 and Europe's Eurostoxx 50 (Eurostoxx50) with the world's lowest management fees.
On the 9th, KB Asset Management launched KBSTAR US S&P500 ETF and KBSTAR Eurostoxx50 ETF, setting the fees at the industry's lowest level. The total annual fee for both products is 0.021%. Specifically, the administrative fee for both products is 0.009%, the custodian fee is 0.01%, and the sales and management fees are set at 0.001%.
This is the lowest level worldwide among ETFs tracking the same indices. According to Bloomberg, a US economic news agency, as of the end of March last year, the ETFs with the lowest total annual fees were iShares Core S&P500 ETF and Vanguard S&P500 ETF, at around 0.03%.
KBSTAR US S&P500 ETF tracks the S&P500 index, which represents leading US blue-chip stocks along with the Dow Jones Industrial Average. KBSTAR Eurostoxx50 ETF tracks the Eurostoxx 50 index, composed of 50 core blue-chip stocks in the Eurozone.
From the perspective of individual investors, using pension accounts can also provide tax-saving benefits. For ETFs tracking overseas indices, a 15.4% dividend income tax must be paid on dividends and capital gains. However, when investing in Nasdaq 100, S&P500, and Eurostoxx50 ETFs through pension accounts, dividend income tax is not imposed on capital gains. When receiving pensions after age 55, a pension income tax of 3.5~5.5% applies, allowing for tax deferral benefits.
Hong Yong-gi, Executive Director of ETF & AI Division at KB Asset Management, said, "Given the long-term nature of pensions, investing through personal and retirement pension accounts is very advantageous with low-fee products," adding, "We lowered the fees for S&P500 and Eurostoxx50 to the lowest level so that investors can enjoy compound returns through various ETFs."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
