Hantoo Asset Management ACE US 30-Year Treasury Active (H) ETF Surpasses 500 Billion KRW in Net Assets

37 Consecutive Trading Days of Net Individual Buying
Number 1 in Net Individual Bond Purchases Since the Beginning of the Year

Korea Investment Trust Management announced on the 29th that the net asset value of the ACE US 30-Year Treasury Active (H) Exchange-Traded Fund (ETF) has surpassed 500 billion KRW.

The net asset value of this product reached 500.6 billion KRW based on the closing price on the 24th, exceeding 500 billion KRW for the first time. It has been about seven months since its listing on March 14. The net asset value was recorded at 518.5 billion KRW the previous day.

The ACE US 30-Year Treasury Active (H) ETF is the first physical US long-term treasury ETF introduced by Korea Investment Trust Management. It uses the Bloomberg US Treasury 20+ Year Total Return Index as its benchmark. It includes bonds with a remaining maturity of 20 years or more among US-issued 30-year treasuries. It is also the first monthly dividend ETF launched by Korea Investment Trust Management. Dividends have been paid monthly since April. Due to the nature of a physical ETF, the source of dividends is interest generated from the included bonds, not the invested principal.

In particular, individual investors have consecutively net purchased this ETF for 37 trading days from the 6th of last month until the previous day. During this period, the net purchase amount by individual investors was 73.9 billion KRW, and the cumulative net purchase amount by individual investors since listing is 274.6 billion KRW. This is the second-highest level of net individual purchases among the total 803 ETFs listed on the KOSPI market since the beginning of the year. It is the largest scale among bond ETFs.

Nam Yong-su, Head of ETF Management at Korea Investment Trust Management, said, "The US 30-year treasury bonds can be held physically and invested up to 100% limit in retirement pensions. The annual total expense ratio is also low at around 0.05%, making it a good product for long-term investment," adding, "Since the US is expected to end rate hikes within this year and cut rates at least once next year, it is a good investment strategy."