Hantoo Asset Management's ACE US Long-Term Bond ETF Series Surpasses 2 Trillion KRW in Net Assets

Korea Investment Trust Management announced on the 21st that the combined net asset value of the four ACE Exchange-Traded Funds (ETFs) investing in U.S. long-term government bonds has surpassed 2 trillion KRW.

The ACE U.S. Long-Term Bond ETF series consists of △ ACE U.S. 30-Year Treasury Active (H) △ ACE U.S. 30-Year Treasury Active △ ACE U.S. 30-Year Treasury Yen Exposure Active (H) △ ACE U.S. 30-Year Treasury Futures Leverage (Synthetic H).

According to the Korea Exchange, the combined net asset value of the four ETFs was 2.0014 trillion KRW as of the previous day. Among individual products, the ACE U.S. 30-Year Treasury Active (H) ETF maintained its position as the largest U.S. long-term bond ETF in Korea with a net asset value of 1.7546 trillion KRW. Following were the ACE U.S. 30-Year Treasury Yen Exposure Active (H) ETF with 109.5 billion KRW, the ACE U.S. 30-Year Treasury Futures Leverage (Synthetic H) ETF with 86.6 billion KRW, and the ACE U.S. 30-Year Treasury Active ETF with 62.8 billion KRW.

Among the four, the product with the largest increase in net asset value this year was the ACE U.S. 30-Year Treasury Active (H) ETF. Its net asset value, which was 632.7 billion KRW at the end of last year, grew by 1.1122 trillion KRW since the beginning of this year, expanding by 175.79% in 2024 alone. The ACE U.S. 30-Year Treasury Futures Leverage (Synthetic H) ETF’s net asset value increased by 25.1 billion KRW. The dollar-exposure product ACE U.S. 30-Year Treasury Active ETF and the yen-exposure product ACE U.S. 30-Year Treasury Yen Exposure Active (H) ETF, both listed in March this year, also saw net asset value increases of 54.8 billion KRW and 101.5 billion KRW respectively compared to their listing day.

The rapid growth of the ACE U.S. Long-Term Bond ETF series’ net asset value is attributed to the interest of individual investors and inflows from pension accounts. According to Koscom ETF Check, the net purchase amount by individual investors for the ACE U.S. Long-Term Bond ETF series this year was 538.1 billion KRW. Inflows into pension accounts totaled 1.4296 trillion KRW. Notably, the ACE U.S. 30-Year Treasury Active (H) ETF attracted 1.2558 trillion KRW from pension accounts, ranking first among bond ETFs. Individual investors also net purchased 417.4 billion KRW worth of this ETF in 2024.

Kim Seunghyun, ETF Consulting Manager at Korea Investment Trust Management, said, “The ACE U.S. Long-Term Bond ETF series has established itself as a representative U.S. long-term government bond product in the domestic ETF market thanks to the net buying trend of individual investors and inflows from pension accounts.”

He added, “The direction toward a base interest rate cut is still maintained, so when combined in a portfolio with U.S. dividend ETFs that have low correlation with U.S. long-term bonds or volatile large-cap technology stock ETFs, it provides diversification benefits. We hope investors build their portfolios while enjoying tax benefits through pension accounts and Individual Savings Accounts (ISA).”