Timefolio Asset Management announced on the 20th that it will list the 'TIMEFOLIO US Nasdaq 100 Bond Mixed 50 Active ETF,' which can be invested 100% through retirement pension (DC/IRP) accounts, on the 25th.
The ETF is designed to pursue both growth and stability by combining US tech stocks (less than 50%) and domestic short-term bonds (at least 50%). It is characterized by maximizing investment efficiency and performance within retirement pension accounts.
Timefolio Asset Management has already proven its ability to manage Nasdaq 100 ETFs. The TIMEFOLIO US Nasdaq 100 Active ETF recorded an 85% increase compared to early last year, significantly outperforming the Nasdaq 100 index. Building on this strength, the bond mixed ETF also reflects a strategy that pursues excess returns through active weight adjustments and discovery of leading stocks beyond simple index tracking.
While stock-type ETFs can be included up to 70% in retirement pension accounts, bond mixed ETFs can be invested up to 100%. Utilizing this, when investing together with existing overseas stock-type ETFs, the proportion of US growth stocks can be maximized. By including 70% of the TIMEFOLIO US Nasdaq 100 Active ETF and 30% of this bond mixed ETF, the portfolio can effectively invest up to 85% in global tech leading stocks.
The differentiated strategy from existing bond mixed ETFs is also noteworthy. Although the stock proportion in bond mixed ETFs was expanded from 40% to 50% due to regulatory easing at the end of 2023, there are currently few ETFs applying the 50% proportion. This ETF is the only product using the Nasdaq 100 as a benchmark index. Using an active strategy, it selects market-leading stocks beyond simple index tracking and discovers high-growth stocks to maximize performance.
Timefolio Asset Management has experience achieving excess returns by initially including growth stocks such as Palantir (PLTR) and MicroStrategy (MSTR) in the TIMEFOLIO US Nasdaq 100 Active ETF. The bond mixed ETF also plans to implement a differentiated management strategy based on active research.
The bond portion minimizes interest rate volatility and eliminates exchange rate risk by utilizing domestic short-term bonds. Generally, long-term bonds can experience sharp price adjustments due to interest rate changes, and especially when investing in US government bonds, exchange rate volatility can pose additional risks. The ETF is designed to be relatively free from interest rate and exchange rate volatility by including domestic short-term bonds.
Manager Bae Hyun-joo of Timefolio Asset Management, who manages the ETF, said, "It is a strategic product that can be invested 100% in retirement pension accounts and, when combined with the existing Nasdaq 100 ETF, can invest up to 85% in US growth stocks." She added, "Through an ETF structured for long-term investment, pension investors will be able to pursue both stability and growth."
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