[Asia Economy Reporter Lee Seon-ae] Yuanta Securities announced on the 14th that it will launch the ‘We Know Global Active ETF Wrap,’ an investment service that constructs a portfolio with globally promising ETFs in line with the investment trend of active ETFs spreading domestically and internationally.
This is to provide investors with a professional active ETF discretionary investment service based on Yuanta Securities’ overseas ETF selection expertise accumulated through the ‘Hidden Alpha EMP Wrap’ series.
With the ARK Investment in the U.S. ETF market and the recent listing of active ETFs in Korea, investor interest in active ETFs is increasing. Additionally, EMP (ETF Managed Portfolio), which manages portfolios using ETFs, is gaining attention alongside ETFs because it is easy to respond to market changes and allows diversified investment across various industries and themes.
The newly introduced ‘We Know Global Active ETF Wrap’ invests in ETFs of structurally growing industries, income ETFs seeking stable capital gains, and promising ETFs in industries entering recovery and boom phases. Unlike simple ETF asset allocation, it operates more actively than existing EMP products by selecting strategic ETFs and discovering core companies among the ETF holdings for additional investment to pursue alpha (α) returns.
Moreover, while domestic active ETFs recently listed on the exchange must maintain a correlation coefficient of 0.7 with their underlying indices as a constraint, the U.S.-listed ETFs, which are the main investment targets of this product, have no such restrictions. Above all, since they account for 70% of global ETF assets, it is possible to freely include various thematic ETFs targeting diverse regions, industries, and niche markets, enabling truly active management.
Kim Ju-hyung, Wrap Operations Team Leader at Yuanta Securities, said, “In times of high market volatility when risk management is difficult, ETF-specialized discretionary investment services are expected to be spotlighted,” adding, “With growing interest in domestic and international active ETFs, ‘We Know Global Active ETF Wrap’ will be a good investment alternative for investors seeking promising ETFs leading the global market along with risk management.”
The minimum subscription amount is 10 million KRW or more. For the general type, a 1% upfront fee is charged once, and 0.3% (1.2% annually) of the average asset balance is charged every three months from the subscription date as a trailing fee. For the performance fee type, only a 1% upfront fee is charged once, and performance fees agreed upon with the client are charged only when a certain profit rate is exceeded.
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