Hana Financial Investment Management: "Nvidia, the Top Pick of Seohak Ants, Has the Largest Inclusion Weight in ACE ETF"

Korea Investment Trust Management recommended its listed exchange-traded fund (ETF), ACE Nvidia Bond Mixed Bloomberg ETF, as an investment vehicle for the top overseas stock 'Nvidia' on the 18th.

ACE Nvidia Bond Mixed Bloomberg ETF is the first single-stock type ETF listed on the Korea Exchange in November 2022. It is characterized by investing in Nvidia, a leading company in the artificial intelligence (AI) sector, and domestic bonds such as government bonds and monetary stabilization bonds at a ratio of 3 to 7. As of the 15th of this month, the proportion of Nvidia included in the ACE Nvidia Bond Mixed Bloomberg ETF is 30%, the highest among ETFs listed domestically.

The advantage of ACE Nvidia Bond Mixed Bloomberg ETF lies in its volatility defense. By allocating individual stocks and bonds at a 3 to 7 ratio, it can defend the downside when the stock price of individual stocks falls. In fact, in 2023, when Nvidia surged by 239.12%, the annual volatility of Nvidia individual stocks reached 47.05, but during the same period, the annual volatility of ACE Nvidia Bond Mixed Bloomberg ETF was limited to 18.34.

Another advantage of ACE Nvidia Bond Mixed Bloomberg ETF is that it can be invested in through pension accounts. Under current law, individual stock investment is not possible in pension accounts such as retirement pensions or personal pensions, but ACE Nvidia Bond Mixed Bloomberg ETF, which includes 70% bonds, can be held up to 100%. Investing in ACE Nvidia Bond Mixed Bloomberg ETF in pension accounts intended for long-term investment allows investors to enjoy the growth benefits of Nvidia while reducing its volatility.

Kim Seunghyun, head of ETF consulting at Korea Investment Trust Management, explained, "Pension accounts must allocate 30% of total assets to safe or risk-free assets, and ACE Nvidia Bond Mixed Bloomberg ETF, which has a stock ratio below 40%, is classified as a safe asset, allowing 100% investment within pension accounts. Through ACE Nvidia Bond Mixed Bloomberg ETF, which includes Nvidia, the biggest beneficiary of the AI semiconductor industry, at the highest proportion among domestically listed ETFs, the stock ratio within pension accounts can be maximized."