Kiwoom Asset Management announced on the 22nd that it will launch the ‘Kiwoom Global Semiconductor Smart Investor Target Conversion Securities Investment Trust,’ which invests in a global semiconductor ETF using a dollar-cost averaging strategy.
This fund is a unit-type product sold for a limited period. Investors who wish to subscribe can do so from the 23rd to the 30th of this month through SC First Bank (from the 23rd to the 29th), KB Securities, Daishin Securities, and Kiwoom Securities, with the possibility of expanding the sales channels in the future.
The Kiwoom Global Semiconductor Smart Investor Target Conversion Fund invests in domestic and international listed equity ETFs that track the U.S. Philadelphia Semiconductor Index and similar semiconductor indices.
The fund employs a smart investor strategy of dollar-cost averaging regardless of investment timing. In other words, once the fund is established, it does not purchase all assets at once but gradually buys global semiconductor ETFs steadily according to price movements.
When the market rises, it buys a smaller portion (4%), and when the market falls, it buys more (5%). Through this strategy, investors can enjoy the advantage of diversified purchase timing similar to investing in an installment savings fund, even if they invest a lump sum only once.
At the initial setup of the fund, semiconductor equity ETFs are purchased at about 30% of total assets. When a rebalancing return of 5% (A Class basis) is achieved, the proportion of semiconductor equity ETFs, which has gradually increased, is reduced back to around 30%. Finally, when the target return of 10% (A Class basis) is reached, the fund automatically converts to a (domestic) bond-reinvestment type fund to preserve returns.
Meanwhile, Kiwoom Asset Management has consistently launched smart investor strategy funds. The smart investor target conversion funds launched in 2022 have all completed their target conversions. The smart investor funds launched in 2023, which invest in KOSPI200, Nasdaq100, and long-term bonds, have also shown excellent performance by achieving rebalancing returns two times, two times, and once, respectively.
The newly launched fund has aggressively differentiated its strategy by increasing the purchase proportions to 4% and 5% for upward and downward touches, respectively, and expanding the same-band purchase limit to three times, considering the high volatility and upward potential of the semiconductor sector index compared to existing smart investor strategy funds.
A representative from Kiwoom Asset Management said, “The semiconductor industry is expected to enter a full recovery phase this year after forming a bottom. As the profit visibility of the semiconductor sector improves, we anticipate a sharp performance improvement.”
They added, “Under the positive outlook for the semiconductor market this year, we recommend this fund to investors who want to effectively invest in the global semiconductor market by using a dollar-cost averaging strategy that automatically times purchases according to market fluctuations and rebalances based on achieved returns.”
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