Korea Investment Management announced on September 3 that the ACE ETF, which includes the ACE US S&P500 ETF and the ACE US Nasdaq100 ETF-exchange-traded funds (ETFs) that invest in major US indices-has seen net purchases by individual investors exceed 500 billion KRW since the beginning of the year.
According to the Korea Exchange, as of the previous day, the net purchase amount by individual investors for the ACE US S&P500 ETF and the ACE US Nasdaq100 ETF totaled 505.5 billion KRW so far this year. By product, the ACE US S&P500 ETF attracted 285.7 billion KRW, while the ACE US Nasdaq100 ETF saw inflows of 219.8 billion KRW. As a result of this steady influx of funds, the net asset value of the ACE US S&P500 ETF increased by 35.96% compared to the end of last year, reaching 2.2602 trillion KRW, while the ACE US Nasdaq100 ETF grew by 31.77% to 1.2938 trillion KRW.
The ACE US S&P500 ETF, listed in August 2020, tracks the US Standard & Poor's (S&P) 500 Index. The S&P 500 Index comprises the top 500 companies by market capitalization on the US stock market. Since it includes leading stocks across 11 sectors such as technology, healthcare, and energy, investing in the ACE US S&P500 ETF offers the benefit of broad diversification.
The ACE US Nasdaq100 ETF, listed in October 2020, tracks the US Nasdaq (NASDAQ) 100 Index. The Nasdaq100 Index consists of the top 100 companies by market capitalization listed on the Nasdaq market. Compared to the S&P500 Index, it has a higher proportion of technology stocks, making it advantageous for long-term investment focused on future growth potential.
Korea Investment Management also lowered the total fees for both products in July. The total fee for the ACE US S&P500 ETF was reduced from 0.07% per year to 0.0047% per year, and for the ACE US Nasdaq100 ETF from 0.07% per year to 0.0062% per year. The company explained that the decision was made in consideration of the large number of investors who choose these ETFs for long-term investment purposes.
Nam Yongsoo, Head of ETF Management at Korea Investment Management, stated, "The ACE US S&P500 ETF and ACE US Nasdaq100 ETF are well-suited for long-term investment thanks to their well-diversified portfolios and low fees. In particular, if investors make regular, systematic investments, they can benefit not only from long-term investment effects but also from time diversification, resulting in more efficient investment outcomes."
ETFs are performance-based products, and losses of principal may occur depending on investment results.
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