Hanwha Asset Management Lists PLUS US S&P500 US Treasury Mixed 50 Active ETF

Hanwha Asset Management announced on the 10th that it will list the 'PLUS US S&P500 US Treasury Mixed 50 Active Exchange-Traded Fund (ETF)', which invests 50% in the S&P500 index, representing the United States, and 50% in ultra-short-term US Treasuries.

This ETF was launched for investors who wish to make long-term investments in the S&P500 with a high allocation through their retirement pension (DC·IRP) accounts. Under current regulations, retirement pension accounts can allocate up to 70% of their assets to equities and other risky assets. The remaining 30% must be filled with safe assets such as deposits or bonds. Among ETFs, bond ETFs and bond-mixed ETFs are classified as safe assets.

The PLUS US S&P500 US Treasury Mixed 50 Active ETF invests 50% in the S&P500 and 50% in ultra-short-term US Treasuries with a remaining maturity of less than three months. The ETF allocates the maximum possible portion (50%) to equities within a bond-mixed ETF, specifically to the S&P500. This allows up to 85% of a retirement pension account to be invested in the S&P500 index.

This is achieved by investing 70% of the retirement pension in the overseas equity ETF, PLUS US S&P500 ETF, and allocating the remaining 30% to the PLUS US S&P500 US Treasury Mixed 50 Active ETF. This structure effectively enables an additional 15% investment in the S&P500 index.

The PLUS US S&P500 US Treasury Mixed 50 Active ETF also invests 50% in ultra-short-term US Treasuries with a remaining maturity of less than three months. These ultra-short-term US Treasuries have low interest rate sensitivity, allowing for stable interest income.

With the US base interest rate (4.25~4.5%) higher than Korea's base interest rate (2.5%), the attractiveness of investing in ultra-short-term US Treasuries increases. These assets serve as safe assets while offering relatively higher expected returns.

Kim Jungsub, Head of the ETF Business Division at Hanwha Asset Management, explained, "For investors who want to allocate as much of their retirement pension assets as possible to the S&P500, investing the safe asset portion in the PLUS US S&P500 US Treasury Mixed 50 Active ETF is a good option." He added, "The combination of the S&P500 and ultra-short-term US Treasuries allows investors to capture growth while reducing volatility, making it a recommended strategy for long-term investment in retirement pension accounts."