ACE US S&P 500, Net Asset Value Surpasses 1 Trillion Won

ACE US 30-Year Treasury Active (H) Second Following
Advantages of Low Actual Cost Ratio and High Annual Distribution Rate

Korea Investment Trust Management announced on the 21st that the net asset value of the ACE US S&P500 Exchange-Traded Fund (ETF) has surpassed 1 trillion KRW.

According to the Korea Exchange, the net asset value of the ACE US S&P500 ETF was recorded at 1.0025 trillion KRW as of the 20th. Among ACE ETFs, the ACE US 30-Year Treasury Active (H) ETF surpassed a net asset value of 1 trillion KRW in March.

The ACE US S&P500 ETF is a product based on the Standard & Poor's (S&P) 500, a representative US index. The S&P500 index is characterized by comprising 500 core stocks that meet criteria such as market capitalization and liquidity among US listed companies. The top holdings by weight in the ACE US S&P500 ETF currently include Microsoft (7.00%), Apple (6.20%), Nvidia (5.11%), Amazon.com (3.79%), and Google (Alphabet A, 2.33%).

One advantage of the ACE US S&P500 ETF is its lower actual expense ratio compared to similar products. The actual expense ratio is the total cost ratio borne by investors, calculated by adding the ETF’s total expense ratio (TER) and brokerage commission rate. The ACE US S&P500 ETF’s actual expense ratio is approximately 0.17%, which is lower than the average of ETFs tracking the S&P500 index (0.45%).

The annual distribution yield is relatively high compared to similar products. The ACE US S&P500 ETF is a quarterly dividend product, recording an annual distribution yield of 1.28%. This exceeds the annual distribution yield (0.95%) recorded by ETFs that track the same index and pay dividends.

The strengths of the ACE US S&P500 ETF have led to inflows of net purchases by individual investors. Individual investors have net purchased 143 billion KRW of the ACE US S&P500 ETF this year. Notably, from January 2 to April 11 this year, there was a continuous net buying trend for 69 trading days.

Seunghyun Kim, ETF Consulting Manager at Korea Investment Trust Management, explained, "The ACE US S&P500 ETF is a product that tracks the US representative index S&P500, offering the advantage of diversified investment in 500 large-cap US stocks with abundant liquidity." He added, "Through a currency exposure strategy, the exchange rate is linked in real time, and it can be invested up to 70% in not only personal pensions but also defined contribution (DC) retirement pensions and individual retirement pensions (IRP)."

The ACE US S&P500 ETF is a performance-distributing product, and past performance does not guarantee future results. Additionally, principal loss may occur depending on management outcomes.