KB Asset Management announced on the 17th that the net assets of the U.S. flagship index exchange-traded fund (ETF) 'RISE U.S. Nasdaq 100' have surpassed 1 trillion KRW.
Recently, due to a dramatic reduction in fees, allowing investment at one of the lowest total expense ratios in Korea (annual 0.0062%), individual investors' interest appears to be rapidly increasing.
The RISE U.S. Nasdaq 100 ETF is a product that invests in the core blue-chip companies of the Nasdaq market, a symbol of global innovative companies, through physical holdings. It invests in about 100 top market capitalization advanced technology stocks led by Apple, Nvidia, Microsoft, Amazon, and Tesla.
The Nasdaq 100, a representative U.S. index, rose 25.88% last year. The cumulative return over the past 10 years reaches 447.53%. Although the U.S. stock market is currently in a box range, the prevailing view is that the long-term upward trend remains valid.
On the 11th, KB Asset Management significantly lowered the total expense ratios of its U.S. flagship index ETFs. By using the RISE ETFs, investors can invest in S&P 500 index tracking products at an annual total expense ratio of 0.0047% and Nasdaq 100 index tracking products at 0.0062%.
The management fee is 0.0001%, effectively a 'zero (0) fee' level. It is evaluated to have a positive impact on investor returns in the long term and is cited as the direct reason for the recent expansion of fund inflows.
The RISE U.S. Nasdaq 100 ETF can be invested in 100% through individual pension accounts and up to 70% through defined contribution (DC) retirement pension and individual retirement pension (IRP) accounts.
No Areum, Head of the ETF Business Division at KB Asset Management, said, "For products invested in the long term through pension accounts, it is important to choose ETFs with low fees," adding, "The RISE U.S. Nasdaq 100 ETF is designed with one of the lowest total expense ratios in Korea, and we recommend individual investors interested in U.S. flagship indices to invest through long-term installment savings."
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