Korea Investment Management announced on May 14 that the combined net asset value of four ACE Exchange Traded Funds (ETFs) classified as mixed-asset types has surpassed 800 billion won.
The products include the following four ETFs: ACE US S&P500 Bond Mixed Active ETF, ACE US Nasdaq100 Bond Mixed Active ETF, ACE Nvidia Bond Mixed Bloomberg ETF, and ACE Global Income TOP10 SOLACTIVE ETF.
According to the Korea Exchange, the combined net asset value of the four mixed-asset ACE ETFs totaled 814.2 billion won. The net asset value of the ACE US S&P500 Bond Mixed Active ETF was 371.9 billion won, the ACE US Nasdaq100 Bond Mixed Active ETF was 217.9 billion won, the ACE Nvidia Bond Mixed Bloomberg ETF was 162.8 billion won, and the ACE Global Income TOP10 SOLACTIVE ETF was 61.6 billion won. Compared to the combined net asset value of 202.9 billion won one year ago, this represents a growth of 301.25%.
Mixed-asset ETFs are products that diversify investments across various assets such as stocks and bonds. There are a total of 53 such ETFs available in Korea. These ETFs utilize management strategies aimed at reducing volatility, and demand for them tends to increase when market uncertainty is high.
The ACE US S&P500 Bond Mixed Active ETF and the ACE US Nasdaq100 Bond Mixed Active ETF are products that invest in the S&P500 and Nasdaq100, which are representative indices of the US market, through a mixed bond approach. Both ETFs share the characteristic of investing approximately 30% in the respective index and 70% in US short-term bonds. In particular, they invest in bonds with maturities of less than one year to minimize interest rate sensitivity.
The ACE Nvidia Bond Mixed Bloomberg ETF invests 30% in Nvidia and 70% in domestic bonds. By investing in Nvidia, which is at the center of the artificial intelligence (AI) industry, the ETF aims to secure high growth potential, while investment in stable bonds helps to mitigate volatility.
The ACE Global Income TOP10 SOLACTIVE ETF invests in 10 ETFs listed in the US that have high dividend yields and consistently pay distributions. It features a balanced allocation of 50% each to equity-type and bond-type ETFs, thereby pursuing the benefits of diversification. Another advantage is that it pays distributions monthly, providing a stable cash flow.
Nam Yongsoo, Head of ETF Management at Korea Investment Management, stated, "In an environment of increasing global stock market uncertainty, investing in mixed-asset ETFs allows investors to pursue a balanced approach to stability and profitability within their portfolios." He added, "The ACE Global Income TOP10 SOLACTIVE ETF can be invested in up to 70% of retirement pension accounts (Defined Contribution (DC) type, Individual Retirement Pension (IRP)), while the other three ETFs can be invested in up to 100%."
All ETFs are performance-based products, so principal loss may occur depending on management results.
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