'KBSTAR Samsung Group Top 3 Bond Mixed Bloomberg ETF' Newly Listed

[Asia Economy Reporter Junho Hwang] KB Asset Management will launch the ‘KBSTAR Samsung Group Top 3 Bond Mixed Bloomberg ETF’ on the 29th.

This product invests 20%, 10%, and 10% respectively in Samsung Electronics, Samsung Biologics, and Samsung SDI, while investing 60% in government bonds. The bonds maintain a duration similar to 3-year government bonds to minimize interest rate risk and pursue stable returns.

The stock and bond allocation is rebalanced daily to maintain a 40:60 ratio, and bond holdings are replaced quarterly. Through bond investments, it diversifies into global core industries such as semiconductors (Samsung Electronics), bio (Samsung Biologics), and secondary batteries (Samsung SDI) based on stable returns.

While existing Samsung Group-related ETFs were equity ETFs investing in more than 15 Samsung Group affiliates, the ‘KBSTAR Samsung Group Top 3 Bond Mixed Bloomberg ETF’ invests only in the top three companies by market capitalization within the Samsung Group.

The ‘KBSTAR Samsung Group Top 3 Bond Mixed Bloomberg ETF’ is expected to be highly useful in pension accounts. Under the current system, the stock ratio in retirement pension accounts is limited to 70%, but by using this product, which holds 40% of total assets in stocks, investors can effectively increase their stock allocation by about 12%.

Geum Jeongseop, Head of ETF Marketing at KB Asset Management, said, "This product diversifies investments in Samsung Electronics, a leading domestic semiconductor company, and Samsung Biologics and Samsung SDI, which are representative companies in bio and secondary batteries, the next growth engines. It will be a good alternative for investors who want to maximize their stock allocation in retirement pension accounts during market corrections."

Meanwhile, KB Asset Management will additionally launch the ‘KBSTAR US Big Data Top 3 Bond Mixed iSelect ETF’ next month, which invests equally 10% each in Amazon, Apple, and Tesla.