ACE US 30-Year Treasury Active, High Trading Volume... 'Continued Net Buying by Individuals'

Korea Investment Trust Management announced on the 17th that the ACE US 30-Year Treasury Active (H) Exchange-Traded Fund (ETF) recorded the highest average daily trading value over one year among bond-type ETFs.

According to the Korea Exchange, the ACE US 30-Year Treasury Active (H) ETF's average daily trading value over the past year was 19.2 billion KRW. This is the highest level among 153 domestically listed ETFs classified as bond-type. The trading value was more than 13 times higher than the average daily trading value of 1.4 billion KRW for bond-type ETFs over the past year. It also ranked first in average daily trading value among the same category over the past nine months.

Trading volume and trading value can be used as indicators to understand market trends by tracking investors' capital flows. The ACE US 30-Year Treasury Active (H) ETF ranked first in average trading volume over 3, 6, 9 months, and one year among ETFs of the same type.

The ACE US 30-Year Treasury Active (H) ETF is the first and largest domestic physical ETF investing in long-term US Treasury bonds. It tracks the 'Bloomberg US Treasury 20+ Year Total Return Index,' which includes US 30-year Treasury bonds with a remaining maturity of 20 years or more. As of the previous day, the ETF's net asset value was 2.0079 trillion KRW, with an increase of 950.7 billion KRW in net assets over the past year.

Expectations for a full-scale interest rate cut have led to continued net purchases by individual investors. Due to the nature of the product investing in long-term US Treasury bonds, investors can expect capital gains if bond prices rise. Since the beginning of the year, individual investors' net purchases of the ACE US 30-Year Treasury Active (H) ETF amounted to 54.1 billion KRW, and over the past year, net purchases totaled 285.9 billion KRW.

Nam Yong-su, Head of ETF Management at Korea Investment Trust Management, explained, "In a highly volatile market environment, if the US interest rate cut cycle proceeds in earnest, the relative attractiveness of long-term bonds, which can provide both interest income and capital gains, will be highlighted." He added, "The ACE US 30-Year Treasury Active (H) ETF is a monthly dividend product, which has the advantage of securing stable distribution resources based on interest income earned from investing in US bonds."

The ACE US 30-Year Treasury Active (H) ETF is a performance dividend product, and principal loss may occur depending on the management results.