KB Asset Management's 'KBSTAR US Nasdaq 100 ETF' Surpasses 500 Billion KRW in Net Assets

KB Asset Management announced on the 11th that the net assets of the U.S. flagship index exchange-traded fund (ETF), ‘KBSTAR US Nasdaq 100 ETF,’ have exceeded 500 billion KRW. This is interpreted as investors continuing to flock to the fund due to the ability to invest in the U.S. flagship index Nasdaq at the lowest domestic fee (annual 0.021%).

The ‘KBSTAR US Nasdaq 100 ETF’ is a product that invests in-kind in core blue-chip companies of the Nasdaq market, a symbol of global innovative companies. It invests in over 100 leading advanced technology stocks by market capitalization, led by Apple, Google, Microsoft, Amazon, and Nvidia.

Since December last year, the ‘KBSTAR US Nasdaq 100 ETF’ has also increased its investment utility by changing the distribution payment dates from January, April, July, and October to March, June, September, and December. Generally, ETFs provide dividends and interest generated from the stocks or bonds included as distributions to investors.

Pension investors or retirees who mainly received distributions from Nasdaq ETFs in January, April, July, and October can now expand their options for distribution cycles through the ‘KBSTAR US Nasdaq 100 ETF.’ This is identified as a direct reason for the recent increase in fund inflows.

Except for domestic equity ETFs, all ETFs require a 15.4% dividend income tax on dividends and capital gains, but tax savings are possible by using pension accounts.

Therefore, when investing in overseas ETFs through pension accounts, dividend income tax is not imposed on capital gains, and when receiving pensions after age 55, a pension income tax of 3.3% to 5.5% is applied, allowing for tax deferral benefits.

Kim Chan-young, Head of the ETF Business Division at KB Asset Management, said, “For ETFs invested in long-term through pension accounts, it is important to choose ETFs with low total costs,” adding, “We will do our best in management to ensure that investors receive the maximum investment returns.”