Hantoo Asset Management's ACE US Representative Index Bond Mixed Active ETFs 2 Types Surpass 150 Billion KRW in Net Assets

Korea Investment Trust Management announced on the 11th that the combined net asset value of two ACE U.S. Representative Index Bond Mixed Active Exchange-Traded Funds (ETFs) has surpassed 150 billion KRW. The products are the ACE U.S. S&P 500 Bond Mixed Active ETF and the ACE U.S. Nasdaq 100 Bond Mixed Active ETF.

As of the 10th, based on Korea Exchange data, the net asset values of the ACE U.S. S&P 500 Bond Mixed Active ETF and the ACE U.S. Nasdaq 100 Bond Mixed Active ETF were 103.8 billion KRW and 48.2 billion KRW respectively, totaling 152 billion KRW. Over the past six months, the ACE U.S. S&P 500 Bond Mixed Active ETF showed a net asset growth rate of 123.06%, while the ACE U.S. Nasdaq 100 Bond Mixed Active ETF recorded 216.01% growth.

These ETFs include approximately 30% each of the U.S. representative market indices S&P 500 and Nasdaq 100. The remaining 70% is invested in U.S. short-term bond indices. The advantage lies in the ability to allocate assets while simultaneously investing in the U.S. market and bonds, thereby reducing volatility. Amid recent unstable market conditions, signals of interest rate cuts from the U.S. Federal Reserve (Fed) have also contributed to increased investment demand for these two products.

Notably, these products actively manage 70% of their portfolios in U.S. bonds. Among short-term bonds with an average maturity of less than one year, they invest not only in U.S. government bonds but also in U.S. dollar (USD)-denominated corporate bonds including Korean Paper (Korean corporate foreign currency bonds). They incorporate high-grade bonds that can smoothly generate interest income, utilizing a flexible active strategy tailored to market conditions.

Seunghyun Kim, ETF Consulting Manager at Korea Investment Trust Management, said, “The U.S. stock market is the largest in the world and has historically shown long-term upward trends. The ACE U.S. S&P 500 Bond Mixed Active ETF and ACE U.S. Nasdaq 100 Bond Mixed Active ETF are attractive products that allow simultaneous investment in U.S. representative indices and bonds.”

He added, “Since these are bond-mixed products, they are advantageous for long-term investment by allowing up to 100% investment limits in defined contribution (DC) retirement pensions and individual retirement pensions (IRP).”