Hana Asset Management Lists 1Q US S&P500 US Treasury 50 Active ETF

Hana Asset Management announced on June 9 that it will list the '1Q US S&P500 US Treasury Hybrid 50 Active ETF' on June 10, marking the first time in Korea that a bond hybrid ETF will invest up to 50% in the S&P500.

This ETF allocates 50% each to the leading US index S&P500 and US short-term Treasuries, making it the product with the highest S&P500 allocation among domestic bond hybrid ETFs.

The 1Q US S&P500 US Treasury Hybrid 50 Active ETF is considered suitable for strategies that actively increase the S&P500 allocation in retirement pension accounts. By allocating the 1Q US S&P500 up to 70% as a risk asset and the 1Q US S&P500 US Treasury Hybrid 50 Active up to 30% as a non-risk (safe) asset within a retirement pension (DC/IRP) account, investors can achieve up to 85% exposure to the S&P500 in their overall portfolio.

The background for the new ETF listing is the amendment to the retirement pension supervisory regulations announced in November 2023. With the relaxation of these regulations, it became possible to allocate 100% of a retirement pension account to bond hybrid ETFs with an equity allocation of less than 50%. The newly listed 1Q US S&P500 US Treasury Hybrid 50 Active ETF has a 50% equity allocation limit. Compared to another asset manager’s S&P500 bond hybrid ETF listed in 2022, which has a 30% S&P500 allocation, the new ETF's S&P500 allocation is approximately 1.67 times higher.

Since the beginning of this year, Hana Asset Management has successively listed ▲1Q US Dividend 30 ▲1Q Comprehensive Bond (AA- or higher) Active ▲1Q US S&P500 ▲1Q Mid-Short Term Corporate Bond (A- or higher) Active. The 1Q US S&P500 ETF drew attention by surpassing KRW 50 billion in net assets just eight trading days after listing, the fastest among S&P500-tracking ETFs listed in Korea.

Kim Taewoo, CEO, stated, "Reflecting the revised retirement pension supervisory regulations in 2023, we are listing a bond hybrid ETF that allows up to 50% investment in the S&P500," and added, "For investors confident in the US market, the ability to allocate 85% to the S&P500 and 15% to US Treasuries within a retirement pension account is highly significant."