ACE TDF2050 Active, Continuous Net Buying by Individuals Since Listing

Korea Investment Trust Management announced on the 26th that individual investors have been continuously net buying the ACE TDF2050 Active Exchange-Traded Fund (ETF), which was listed on the 11th.

According to the Korea Exchange, individual investors have net bought the ACE TDF2050 Active ETF for 11 consecutive trading days from the 11th to the 25th.

The ACE TDF2050 Active ETF is a target date fund (TDF) ETF introduced by Korea Investment Trust Management. A TDF is a product that allocates assets according to the target date (vintage), and a TDF ETF combines the management strategy of a TDF with the convenience of an ETF. Korea Investment Trust Management simultaneously listed three products: ACE TDF2050 Active ETF, ACE TDF2030 Active ETF, and ACE Long-Term Asset Allocation Active ETF.

ACE TDF2050 Active ETF, ACE TDF2030 Active ETF, and ACE Long-Term Asset Allocation Active ETF are all managed based on the Long-Term Capital Market Assumptions (LTCMA) optimized for Korean won investors. LTCMA is also utilized in the management strategy of the Korea Investment TDF Alseora ETF Focus Fund, which Korea Investment Trust Management introduced in October 2022. The optimal portfolio according to LTCMA is a combination of currency-exposed overseas stocks, gold, and domestic bonds. According to Fund Guide, over the past year, the Korea Investment TDF Alseora ETF Focus Fund has ranked first in both returns and risk-adjusted returns (Sharpe ratio) across all vintages.

One reason for the continued investment in the ACE TDF2050 Active ETF is its usability for pension account investments. The ACE TDF2050 Active ETF has an initial risk asset allocation of 76.8%, maximizing the proportion of risk assets when invested through pension accounts. The initial risk asset allocations for the ACE TDF2030 Active ETF and ACE Long-Term Asset Allocation Active ETF are 46.4% and 99%, respectively. The products that can be invested 100% within retirement pension accounts are the ACE TDF2030 Active ETF and ACE TDF2050 Active ETF, while the ACE Long-Term Asset Allocation Active ETF can be invested up to 70%.

Kang Sung-soo, Executive Director in charge of solutions at Korea Investment Trust Management, said, "It is meaningful that individual investors have been steadily net buying the ACE TDF2050 Active ETF since its listing, even without large-scale funds." He added, "Among the same vintage (2030) TDF ETFs, the ACE TDF2030 Active ETF has the largest net buying volume by individual investors," and explained, "The ACE Long-Term Asset Allocation Active ETF is also receiving significant net buying amounts from individual investors among the three ACE ETF products."

Both the ACE ETFs and the Korea Investment TDF Alseora ETF Focus Fund are performance dividend-type products, and past performance does not guarantee future results. Additionally, principal loss may occur depending on management outcomes.