Korea Investment Management announced on May 27 that individual investors continue to record net purchases of the ACE US Dividend Quality Exchange-Traded Fund (ETF) series.
The ACE US Dividend Quality ETF series consists of three products: the ACE US Dividend Quality ETF, the ACE US Dividend Quality Bond Mix 50 ETF, and the ACE US Dividend Quality + Covered Call Active ETF.
According to the Korea Exchange on the 26th, among the three products, the ACE US Dividend Quality ETF and the ACE US Dividend Quality + Covered Call Active ETF have seen individual investor inflows for 10 consecutive trading days. During this period, the combined net purchases of all three products, including the ACE US Dividend Quality Bond Mix 50 ETF, reached 11.5 billion KRW. The ACE US Dividend Quality Bond Mix 50 ETF has also recorded net individual purchases on every trading day since its listing, except for just one day.
The ACE US Dividend Quality ETF series is based on DGRW (WisdomTree US Quality Dividend Growth ETF) from the US asset manager WisdomTree. DGRW is a dividend growth ETF that was listed on the New York Stock Exchange in 2013. This ETF features a portfolio focused on technology stocks with high potential for future dividend growth, aiming to increase total return (TR) while also incorporating quality factors such as earnings growth rate to reduce volatility.
The ACE US Dividend Quality ETF is known as the "Korean version of DGRW" and tracks the same underlying index (WisdomTree U.S. Quality Dividend Growth Index (Price Return)), converted into KRW. The other two products, the ACE US Dividend Quality Bond Mix 50 ETF and the ACE US Dividend Quality + Covered Call Active ETF, are characterized by combining the ACE US Dividend Quality ETF with government bonds or monetary stabilization securities with less than two years to maturity, or with domestic and overseas covered call ETFs. Based on these characteristics, in defined contribution (DC) retirement pension plans and individual retirement pension (IRP) accounts, up to 100% of investments can be allocated to the ACE US Dividend Quality Bond Mix 50 ETF, while the other two products allow up to 70% investment.
Nam Yongsoo, Head of ETF Management at Korea Investment Management, stated, "The launch of the ACE US Dividend Quality ETF series is intended to expand the options for US dividend investing," adding, "Among domestic investors in US dividend products, there are a variety of types, from those seeking high distribution rates to those who prefer to pursue higher long-term performance even if the distribution rate is slightly lower."
He continued, "Until now, US dividend investing in Korea has centered on the so-called 'Korean version of SCHD' (Schwab US Dividend Equity ETF), but it is difficult for US technology stocks that have recently begun paying dividends to be included in that portfolio." He also emphasized, "For investors seeking high long-term returns, the ACE US Dividend Quality ETF series, which can include technology stocks with earnings growth, will be an attractive investment destination."
All three ACE ETFs are performance-linked products, and principal loss may occur depending on investment results.
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