Samsung Asset Management Recommends 3 ETFs to Fill 30% Safe Asset Allocation in Retirement Accounts

As the year-end approaches, investors are actively seeking to take advantage of tax deduction benefits. Due to the demand for tax deductions, contributions to Individual Retirement Pension (IRP) accounts are increasing. However, the IRP rule requiring at least 30% of assets to be allocated to safe assets-capping risky asset investments at 70%-has become a key concern for investors.

Recently, with growing expectations for the KOSPI to reach 5,000, many investors are looking to increase their allocation to domestic stocks. However, due to the limitations on stock exposure within IRP accounts, the selection of safe assets is emerging as a crucial strategic element.

On December 15, Samsung Asset Management suggested bond-mixed ETFs-two products that allow investors to participate in the rise of the domestic stock market while maintaining the required allocation to safe assets-as well as TDF ETFs suitable for responding to long-term global growth.

For IRP investors who want to increase their domestic stock allocation, the company recommends "KODEX 200 US Treasury Bond Mix" and "KODEX Samsung Electronics Bond Mix." As bond-mixed ETFs, these products are classified as safe assets but still provide a certain degree of stock exposure.

KODEX 200 US Treasury Bond Mix is an ETF that invests in both the KOSPI 200, representing the Korean stock market, and 10-year US Treasury bonds, representing the US bond market. Among locally listed bond-mixed ETFs, it is the only one that invests in both domestic stocks and foreign bonds, allocating 40% to the KOSPI 200 and 60% to 10-year US Treasuries.

By investing in the KOSPI 200, investors can track the upward momentum of the domestic stock market while also earning about 4% interest income from 10-year US Treasury bonds. KODEX Samsung Electronics Bond Mix invests 30% in Samsung Electronics and 70% in Korean government bonds. This product allows investors to benefit from the improving semiconductor industry through Samsung Electronics, while bond investments significantly reduce portfolio volatility.

For IRP investors seeking long-term investment in global assets as well as the domestic market, the company proposes the "KODEX TDF2060 Active" ETF. A Target Date Fund (TDF) is a fund that automatically adjusts the ratio of risky assets such as stocks and safe assets such as bonds according to the investor's chosen retirement target year, which is indicated as the fund’s vintage. The KODEX TDF Active ETF combines the features of a TDF, which is tailored for retirement pension accounts, with the advantages of ETFs, such as real-time trading, transparent asset disclosure, and low fees.

KODEX TDF2060 Active is designed for younger investors with a long time horizon until retirement, enabling aggressive investment. It allocates 50% to global stocks, with about 30% invested in the US S&P 500, which has demonstrated long-term growth. Compared to existing vintages, this portfolio is even more aggressive. It maintains a high stock allocation for an extended period, but as retirement approaches, the risk is gradually reduced, allowing investors to enjoy both IRP tax benefits and a stable long-term investment strategy.

A representative from Samsung Asset Management stated, "Even with safe assets, it is important to actively manage and select products that match your investment profile to enhance the real returns of your retirement assets. If you are optimistic about the domestic stock market, use the 'KODEX Bond-Mixed ETFs.' If you want global diversification, utilize the 'KODEX TDF2060 Active' to smartly fill your safe asset allocation."