Starting April 29, NH NongHyup Bank retirement pension subscribers will be able to trade the 'KIWOOM Germany DAX' exchange-traded fund (ETF) in their defined contribution (DC) retirement pension and individual retirement pension (IRP) accounts.
On April 28, Kiwoom Asset Management announced that the NH NongHyup Bank Retirement Pension Department will add the KIWOOM Germany DAX ETF to the list of investment products available for DC retirement pension and IRP accounts.
The NH NongHyup Bank Retirement Pension Department proactively reviewed the inclusion of a German equity ETF lineup to meet the demand of investors seeking alternative investment destinations, as volatility in global stock markets has increased due to the US-initiated tariff war and concerns over a global economic slowdown.
The KIWOOM Germany DAX ETF tracks the DAX index, which is composed of the top 40 stocks by free-float market capitalization listed on the Frankfurt Stock Exchange. The DAX index is Germany's representative stock index, covering about 75% of the country's total market capitalization, and is centered on Germany's leading blue-chip stocks. Its key feature is broad diversification across various sectors, including information technology (IT), industrials, defense, finance, and telecommunications, rather than being concentrated in a specific sector.
The ETF includes SAP, the leading European software company with the largest market capitalization in Europe; Siemens, a major player in energy, infrastructure, and industrials; Allianz, a global insurance giant; and Deutsche Telekom, the largest telecommunications company in Europe. It also invests in Rheinmetall, Germany's leading defense company, and Airbus, Europe's largest aerospace and defense company.
While major stock markets around the world, including the United States, have faltered this year, the German stock market has delivered differentiated results. From the beginning of the year until April 25, the US S&P 500 index and the Nasdaq index fell by 5.85% and 9.84%, respectively. In contrast, the German DAX index rose by 11.08%. As of April 25, the KIWOOM Germany DAX ETF recorded returns of 11.66% over the past three months, 16.86% year-to-date, and 33.99% over the past year. As an unhedged, currency-exposed ETF, its performance benefited further from the strength of the euro.
The shift in Germany's fiscal policy direction is also supporting the stock market. The German government has traditionally prioritized fiscal soundness over economic stimulus through monetary expansion. However, Germany has recently recognized the need to respond to slowing growth and to strengthen national defense, and has shifted toward expansionary fiscal policy.
A representative from Kiwoom Asset Management stated, "The investment environment surrounding Germany is broadly favorable, given the European Central Bank's ongoing interest rate cuts, Europe's rearmament, the long-term growth potential of Germany's strengths in IT, defense, and manufacturing, and the major shift in fiscal policy."
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