KODEX TRF7030, 3-Year Return '26%' Highest Among TDF/TRF

Proven Long-Term Investment Effect in Volatile Markets with Rebalancing Technique
Total Fee 0.1%, Cheaper than Regular TDF Favoring Long-Term Investment

Samsung Asset Management announced on the 2nd that the recent 3-year return of ‘KODEX TRF7030’ reached 25.8%. Since its listing in July 2019 (3 years and 8 months), it has recorded a return of 30.3%, surpassing the returns of all TDFs during the same period, and is being recognized for bringing a fresh breeze to the long-term pension investment market.

Additionally, KODEX TRF7030 has posted positive returns of 2.6%, 10.9%, and 25.8% over the past 1, 2, and 3 years, respectively. This achievement stands out especially as most TDF products currently show negative returns over 1 and 2 years due to the global stock market decline since last year. This is why TRF (Target Risk Fund) is attracting attention as a new alternative for long-term pension investment products.

TRF is characterized by rebalancing management that continuously maintains a fixed ratio between risk assets and safe assets without arbitrarily adjusting the investment assets and proportions. Assets whose prices rise or fall and thus increase their portfolio weight are sold, while assets whose weight decreases are bought. By continuously rebalancing in this way, the fund experiences relatively small fluctuations in returns even in volatile markets and can generate returns in sideways markets.

The KODEX TRF series is a global asset allocation fund designed considering investors’ risk preferences, making it a mixed product suitable for long-term investment. It diversifies investments into global developed country stocks and domestic bonds, and consists of three products: TRF7030, TRF5050, and TRF3070, depending on the investment ratio. The first two digits indicate the proportion invested in global developed country stocks, and the last two digits indicate the proportion invested in domestic bonds. Investors can select a product according to their stock investment ratio, i.e., their Target Risk, that matches their investment preference. TRF3070, which invests 70% in bonds, is considered a safe asset in retirement pensions and can be invested up to 100% of retirement pension reserves.

The KODEX TRF series combines the advantages of TRF with the benefits of ETFs. In particular, it offers lower fees compared to TDFs. The total expense ratio of TRF ETFs ranges from 0.1% to 0.24%, which is much cheaper than typical TDFs, making it suitable for long-term investment. Due to the nature of ETFs, investors can transparently check the holdings, and unlike general TDFs that take about three weeks to switch products, trading can be done in real time, which is another major advantage.

Park Sung-chul, head of the ETF Management Team 1 at Samsung Asset Management, said, “The KODEX TRF series is a global asset allocation ETF designed for pension investment, and due to the rebalancing investment effect, the probability of principal loss is very low during long-term investment even in volatile markets. Among TDF and TRF products operated for more than three years in the industry, the KODEX TRF series has recorded the best returns, making it a good investment alternative for smart investors considering retirement pension investments.”