Hantoo Asset Management "First Dividend Payment for Two ACE ETFs Investing in US 30-Year Treasury Bonds"

Korea Investment Trust Management announced on the 25th that it will pay the first dividends next month on the 3rd for two exchange-traded funds (ETFs) investing in 30-year U.S. Treasury bonds. The products paying their first dividends are the ACE US 30-Year Treasury Bond JPY Exposure Active (H) ETF and the ACE US 30-Year Treasury Bond Active ETF.

Both ETFs are monthly dividend-type products that were listed on the Korea Exchange on April 12. The first dividend paid in May will cover 1.5 months from the listing date through April, and the dividend amount will be disclosed on the 26th. To receive the dividend, investors must purchase the product by the 26th.

The ACE US 30-Year Treasury Bond JPY Exposure Active (H) ETF is a physical product that simultaneously invests in 30-year U.S. Treasury bonds and the Japanese yen, often referred to as the Korean version of the 'ISHARES 20+ YEAR US TREASURY BOND JPY HEDGED ETF (2621 ETF)'. According to the Korea Securities Depository, the 2621 ETF ranks 4th in net overseas stock purchases this year (as of the 23rd, approximately KRW 475.6 billion). This is interpreted as overseas stock investors massively net buying due to expectations of yen appreciation and U.S. interest rate cuts.

Unlike the 2621 ETF, the ACE US 30-Year Treasury Bond JPY Exposure Active (H) ETF not only pays monthly dividends but also can be invested in through pension accounts. As a result, domestic investors have net purchased over KRW 27 billion since the ETF was listed.

The ACE US 30-Year Treasury Bond Active ETF is a foreign exchange exposure product of the ACE US 30-Year Treasury Bond Active (H) ETF, which was the first ACE ETF to surpass KRW 1 trillion in net asset value. Its advantage is that investors can receive both foreign exchange gains and bond interest income when the KRW/USD exchange rate rises. The ACE US 30-Year Treasury Bond Active ETF has also seen steady net buying by individual investors except for just three trading days since its listing.

Korea Investment Trust Management has also prepared two events to commemorate the first dividend payment of the ACE US 30-Year Treasury Bond JPY Exposure Active (H) ETF. The first is the 'Dividend King Event,' which awards a prize to the individual who receives the highest dividend amount. The second is the 'Dividend Certification Event,' where anyone can enter simply by certifying receipt of the dividend regardless of the amount.

Participation is completed by adding ACE ETF as a friend on KakaoTalk and certifying receipt of the ACE US 30-Year Treasury Bond JPY Exposure Active (H) ETF dividend. Participants can enter both events simultaneously. The events end on May 12. Detailed participation methods and event prizes can be found on the ACE ETF website, blog, and KakaoTalk channel.

Kim Seung-hyun, head of ETF consulting at Korea Investment Trust Management, said, “We prepared these events to express our gratitude to investors who have shown steady interest in the ACE US 30-Year Treasury Bond JPY Exposure Active (H) ETF and ACE US 30-Year Treasury Bond Active ETF, which were listed last March.”

He added, “In addition to the ACE US 30-Year Treasury Bond Active (H) ETF, the first ACE ETF to surpass KRW 1 trillion in net asset value, we ask for continued interest in the yen exposure product ACE US 30-Year Treasury Bond JPY Exposure Active (H) ETF, the foreign exchange exposure product ACE US 30-Year Treasury Bond Active ETF, and the leveraged product ACE US 30-Year Treasury Futures Leverage (Synthetic H) ETF.”

Meanwhile, all ACE ETFs mentioned in this article are performance dividend-type products, and principal loss may occur depending on management results.