ACE US 30-Year Treasury Yen Exposure Active (H), Year-to-Date Returns 'Favorable'

Korea Investment Trust Management announced on the 9th that the ACE US 30-Year Treasury JPY Exposure Active (H) Exchange-Traded Fund (ETF) recorded the highest year-to-date return among overseas bond ETFs.

According to the Korea Exchange, as of the previous day, the year-to-date return of the ACE US 30-Year Treasury JPY Exposure Active (H) ETF was 8.96%. This is the highest return among 36 overseas bond ETFs listed domestically. During the same period, the average return of overseas bond ETFs was 1.69%, meaning the ACE US 30-Year Treasury JPY Exposure Active (H) ETF outperformed the average by 5.3 times.

The ACE US 30-Year Treasury JPY Exposure Active (H) ETF invests simultaneously in US 30-year Treasury bonds and the Japanese yen. Its benchmark index is the Bloomberg US Treasury 20+ Year Total Return Index T1530 JPY Currency Hedged Index converted to Korean won. It allows investors to benefit from capital gains on bonds when the US base interest rate is lowered, as well as seek foreign exchange gains from the appreciation of the Japanese yen. The ETF’s total net assets amount to approximately KRW 103.4 billion. Its performance over the past six months and one year stands at 0.51% and 3.74%, respectively.

Another advantage is the monthly dividend payments. The ACE US 30-Year Treasury JPY Exposure Active (H) ETF is a physical investment product that invests directly in US bonds. Since it is funded by actual bond interest income, stable dividend payments are possible.

Nam Yong-su, Head of ETF Management at Korea Investment Trust Management, stated, "Demand for US long-term bonds is rising due to expectations of a US base interest rate cut amid economic slowdown, and the outlook for the Japanese yen’s appreciation continues." He added, "At this point, when the value of US Treasury bonds and the yen is expected to rise, the ACE US 30-Year Treasury JPY Exposure Active (H) ETF is a highly attractive investment product."

He also introduced, "This ETF can be held up to 100% within pension accounts (defined contribution (DC) type, individual retirement pension (IRP)), so we recommend considering investment from a long-term perspective."

The ACE US 30-Year Treasury JPY Exposure Active (H) ETF is a performance-distributing product, and past returns do not guarantee future returns. Principal loss may occur depending on management results.