'SOL US TOP5 Bond Mix 40 Solactive' Newly Listed

[Asia Economy Reporter Junho Hwang] Shinhan Asset Management will list the 'SOL US TOP5 Bond Mixed 40 Solactive' exchange-traded fund (ETF) on the Korea Exchange on the 29th.

This product invests 40% in the top 5 US stocks by market capitalization and 60% in domestic bonds. The US stocks include Apple, Microsoft, Google, Amazon, and Tesla. Regarding the stock portion, the main feature of the underlying index is that it replaces stocks through periodic adjustments if the US market capitalization rankings change. Domestic bonds are composed of short-term Treasury bonds. For the bond portion, to minimize volatility in returns due to interest rate fluctuations and to pursue stable interest income, it invests in Treasury bonds with an average duration of 0.3 years.

Kim Jeonghyun, head of the ETF Management Center at Shinhan Asset Management, said, "SOL US Top 5 Bond Mixed 40 Solactive is a product that can be invested 100% through retirement pension accounts," adding, "It is the only domestic ETF with a 40% US stock allocation among bond-mixed products, allowing more aggressive management in retirement pension accounts."