Korea Investment Trust Management Changes ETF Name to ‘ACE US WideMoat Equal Weight’

Korea Investment Trust Management announced on the 13th that it will change the name of the ACE US Wide Moat Value Stock Exchange-Traded Fund (ETF) to ACE US Wide Moat Equal Weight ETF. This product invests in U.S. listed stocks that have established an economic moat, and the new name will be applied from the 14th.

At the time of listing, the term "value stock" was used in the ETF name to help investors understand the methodology of selecting stocks through a fair value estimation model. However, this ETF is a product that selects stocks not only undervalued but also those with corporate competitiveness. The name change aims to resolve investor misunderstandings and enhance the product's appeal.

Recently, there has been a concentration phenomenon mainly in large-cap stocks such as AI-related stocks, and during the adjustment process, large price fluctuations occurred. As a result, investor demand for equal-weighted products, which have relatively smaller price fluctuations compared to market-cap weighted methods, has increased. Accordingly, the name change was promoted to intuitively communicate the equal-weighted design method of the product.

The ACE US Wide Moat Equal Weight ETF was listed in October 2018, and as of the closing price on the 12th, the return since listing approaches 149.30%. This figure surpasses the 138.30% increase of the S&P 500, a representative U.S. blue-chip index, during the same period (based on KRW conversion). The returns for the past 1 year and 3 years were recorded at 15.71% and 41.30%, respectively.

The underlying index tracks the ‘Morningstar Wide Moat Focus Price Return Index,’ which selects and includes stocks that meet criteria after evaluating the level of economic moat and the degree of undervaluation compared to fair value.

Nam Yong-su, Head of ETF Management at Korea Investment Trust Management, introduced, "The ACE US Wide Moat Equal Weight ETF changes its holdings every three months to select companies that have established an economic moat and have excellent growth potential and corporate value." He added, "It is differentiated as an equal-weighted product emphasizing corporate quality rather than a simple equal-weighted method. From a long-term perspective, it offers investment in U.S. blue-chip companies, cash flow generation through quarterly dividends, and tax benefits when investing through pension accounts."

The ACE US Wide Moat Equal Weight ETF is a performance dividend-type product, and past performance does not guarantee future results. Principal loss may occur depending on management outcomes.