KB Asset Management's 'US Nasdaq 100 ETF' Surpasses 100 Billion KRW in Net Assets

[Asia Economy Reporter Minji Lee] KB Asset Management announced on the 10th that the KBSTAR US Nasdaq 100 ETF has surpassed 100 billion KRW in net assets.

The KBSTAR US Nasdaq 100 ETF has grown by more than 60 billion KRW since the beginning of the year, and its return over the past three months has been 11.5%, showing steady progress. Although it was the last to be launched in the domestic ETF market where first-mover advantage is important, this result was achieved by lowering the annual fee to the world's lowest level of 0.021% at the beginning of the year.

KB Asset Management has launched not only the KBSTAR US Nasdaq 100 ETF but also the ‘KBSTAR KOSPI 200 ETF’, ‘KBSTAR KOSPI 200 TRETF’, ‘KBSTAR US S&P 500 ETF’, and ‘KBSTAR Eurostoxx 50 ETF’ with the world's lowest fees, providing investors with investment options to invest in representative indices of Korea, the US, and Europe at the world's lowest fees. In particular, the US market investment has become much easier by lowering fees for two representative indices, Nasdaq 100 and S&P 500.

For index-tracking ETFs, a 15.4% dividend income tax must be paid on dividends and capital gains, but tax savings are possible by using pension accounts. When investing in overseas ETFs through pension accounts, dividend income tax is not imposed on capital gains, and when receiving pension payments after age 55, a pension income tax of 3.5~5.5% applies, allowing for tax deferral benefits.

Yook Dong-hwi, head of the ETF Consulting Team at KB Asset Management, said, “As market volatility has increased recently, more individual investors are using ETFs rather than directly investing in overseas assets,” and added, “We recommend long-term investment through individual and retirement pension accounts to enjoy the compound return effect with low-fee overseas ETFs.”