Korea Investment Management Recommends Four ACE ETFs Highly Suitable for Pension Accounts

Korea Investment Management recommended four exchange-traded funds (ETFs) with high utility for pension accounts on December 3.

All four are bond-mixed products: ▲ACE US S&P500 US Bond Mix 50 Active ETF ▲ACE US Nasdaq100 US Bond Mix 50 Active ETF ▲ACE US Dividend Quality Bond Mix 50 ETF ▲ACE Nvidia Bond Mix ETF.

Bond-mixed products can be invested in not only individual pensions but also 100% in defined contribution (DC) retirement pensions. According to the retirement pension investment white paper released by the Financial Supervisory Service last month, top-performing retirement pension investors actively utilize not only equity funds but also bond-mixed funds. This is a strategy to increase the proportion of stock investments while complying with the 70% risk asset investment limit within retirement pension accounts.

Since each product has a different investment target, investors can choose products that match their investment preferences. The ACE US S&P500 US Bond Mix 50 Active ETF and the ACE US Nasdaq100 US Bond Mix 50 Active ETF invest in the S&P500 Index and the Nasdaq100 Index, respectively, which are representative US indices. Investors who wish to diversify into 500 major large-cap US companies can choose the ACE US S&P500 US Bond Mix 50 Active ETF, while those seeking exposure to leading global technology companies can select the ACE US Nasdaq100 US Bond Mix 50 Active ETF. Both products initially had a 30% equity allocation at listing, but have recently increased their equity proportion to 50% through portfolio adjustments.

The ACE US Dividend Quality Bond Mix 50 ETF, launched by Korea Investment Management in May this year, invests 50% in US dividend quality stocks and 50% in domestic short-term bonds. US dividend quality stocks refer to US companies that have paid dividends in the past year and are currently showing strong earnings quality and future growth potential. As many technology stocks are included among the dividend quality stocks, this product is considered suitable for investors seeking both growth and dividends.

The ACE Nvidia Bond Mix ETF, a single-stock product, consists only of Nvidia and domestic bonds in its portfolio. According to the Koscom ETF Check, Nvidia accounts for about 30% of this ETF, the highest Nvidia allocation among ETFs listed in Korea.

Nam Yongsoo, Head of ETF Management at Korea Investment Management, stated, "Investing through pension accounts typically involves a long investment horizon, so it is important to focus on long-term growth potential rather than short-term volatility when selecting investment targets. This is why bond-mixed ETFs that include US representative indices, dividend quality stocks, or future growth stocks like Nvidia are highly useful for pension accounts."

All ACE ETFs are performance-based products, so principal loss may occur depending on investment results.