The Korea Investment US Tech Step-Up Dollar-Cost Averaging Fund is a strategic product designed for investors interested in rapidly growing US tech companies such as the Magnificent 7 (M7), but who may be concerned about high valuations and volatility. The main investment targets are domestically listed ETFs that focus on the M7, such as the ACE US Big Tech TOP7 Plus ETF. The M7 refers to the seven major big tech companies: Microsoft, Apple, Google (Alphabet), Amazon, Tesla, Meta, and Nvidia.
The "step-up dollar-cost averaging strategy" used by this fund means that investment assets are purchased in portions according to a set rule, rather than the manager's intuition. At the fund’s inception, about 30% of net assets are invested in domestically listed US big tech ETFs. Subsequently, additional purchases are made periodically whenever the market price fluctuates by ±2% or more from the reference point.
Purchases can be made up to three times within the same price range and within the same time interval (within five business days), allowing investors to naturally benefit from both price and time diversification effects. Dollar-cost averaging continues until 100% of net assets are invested. If the target return of 5% is reached before the portfolio reaches 100% allocation, a rebalancing (profit-taking) is executed by reducing the asset allocation to 30%. After resetting the reference price, the dollar-cost averaging process resumes.
The fund's performance has been demonstrated through the "Korea Investment Global M7 Step-Up Dollar-Cost Averaging Target Return Fund," a target return product. The first and second series of this fund, which invest in the same US big tech companies, showed strong defensive performance during market downturns and quickly achieved target returns during upturns. Both series have been redeemed after reaching their target returns and a set period has passed.
Another advantage of the Korea Investment US Tech Step-Up Dollar-Cost Averaging Fund is its fast redemption payment cycle. This fund pays out redemption proceeds within three business days after a redemption request. Considering that general overseas equity public offering funds typically take eight business days to pay out after a redemption request, this fund offers a competitive edge in terms of liquidity.
Kim Donghyun, Head of the Global Quantitative Investment Department at Korea Investment Management and the fund's responsible manager, stated, "M7 companies are the core driving force behind global technological innovation and market growth. US tech companies leading future technologies such as artificial intelligence (AI), computing, and electric vehicles are expected to continue their growth trajectory."
He added, "This fund not only aims to achieve target returns and reduce volatility regardless of market conditions through the step-up dollar-cost averaging strategy, but also addresses investor inconvenience by shortening the redemption cycle."
All products are performance-based, and past performance does not guarantee future results. Principal loss may occur depending on investment results.
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