Seminar Held to Celebrate Listing
Korea Investment Management and WisdomTree Sign Agreement and Develop Indices
DGRW Includes Recently Dividend-Initiated Technology Growth Stocks
New Products Launched to Meet Demand from Monthly Dividend Investors
On May 13, Korea Investment Management held a seminar at Conrad Seoul in Yeouido, Seoul to mark the new listing of the ACE US Dividend Quality Exchange-Traded Fund (ETF) series.
Attendees at the seminar commemorating the new listing of the ACE US Dividend Quality series included Bae Jae-kyu, CEO of Korea Investment Management, Nam Yong-su, Head of ETF Management, and Jeremy Schwartz, Chief Investment Officer (CIO) of WisdomTree.
The ACE US Dividend Quality series consists of the following: ACE US Dividend Quality ETF, ACE US Dividend Quality Bond Mix 50 ETF, and ACE US Dividend Quality + Covered Call Active ETF. Korea Investment Management signed a business agreement with WisdomTree and developed the indices for the launch of this ETF series.
In his opening remarks, CEO Bae Jae-kyu stated, "Although there may be short-term volatility, the strategy of investing in US growth stocks for the long term remains valid," and added, "This is the reason we are introducing a new dividend ETF focused on US growth stocks."
Jeremy Siegel, a professor at the Wharton School, delivered his greetings via video. Professor Siegel is the academic behind the theoretical foundation of WisdomTree's 'WisdomTree US Quality Dividend Growth ETF (DGRW),' which underpins the ACE US Dividend Quality series. He said, "I have always been interested in the factors causing stock price fluctuations and in stocks suitable for long-term holding," and explained, "This is why I designed a portfolio that includes companies with solid financials and future growth potential, capable of consistently increasing dividends."
The first keynote presentation was given by Jeremy Schwartz, CIO. He began by noting, "Unlike during the dot-com bubble of the 2000s, today's technology stocks are reasonably priced, reflecting their growth rates." He continued, "DGRW has the flexibility to reflect both dividend growth and overall business growth, rather than just focusing on a dividend history of over ten years," and added, "This flexibility allows the inclusion of high-quality technology growth stocks that have only recently begun paying dividends."
He further stated, "The DGRW strategy, which incorporates both a company's growth potential and dividend growth, not only aims for higher total returns but also provides defensive strength during market downturns," and added, "In fact, DGRW demonstrated excellent defensive performance during the downturns in 2022 and earlier this year."
Nam Yong-su, Head of ETF Management, delivered the second keynote presentation, introducing the ACE US Dividend Quality series. He explained, "Domestic monthly dividend investors have expressed disappointment as the compounding effect of US high-dividend ETFs within tax-advantaged accounts has diminished following changes to foreign withholding tax regulations," and continued, "We determined that there was a need for a new product to meet investor demand for higher total returns through long-term investment and steady cash flow via monthly distributions, which led to the launch of the ACE US Dividend Quality series."
He emphasized, "The most reliable way to invest successfully is to trust and invest in quality assets over the long term," and added, "ACE ETFs will continue to do their best to offer a wide range of investment options."
The ACE US Dividend Quality series is a performance-dividend product, and principal loss may occur depending on investment results.
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