KODEX 200 US Treasury Bond Mix and Samsung Electronics Bond Mix Post Strong One-Year Returns

As the upward trend in the domestic stock market continues, bond-mixed exchange-traded funds (ETFs) are emerging as an alternative for investors who want to invest in the rise of the Korean stock market through pension accounts while managing their retirement assets safely. KODEX 200 US Treasury Bond Mix and KODEX Samsung Electronics Bond Mix, both managed by Samsung Asset Management, are attracting attention as they rank among the top performers in the bond-mixed ETF category.

Samsung Asset Management announced on January 19 that KODEX 200 US Treasury Bond Mix recorded a one-year return of 42.2%, ranking first in overall returns among domestic bond-mixed ETFs.

This ETF allocates 40% to the KOSPI 200 Index, the key benchmark of the Korean stock market, and 60% to 10-year US Treasury bonds. Thanks to the sharp growth of the KOSPI Index, it also ranked first in its category with a six-month return of 28.8% and a three-month return of 14.7%.

KODEX Samsung Electronics Bond Mix also posted a one-year return of 39.0%, ranking second among all bond-mixed ETFs. This ETF invests up to 30% in Samsung Electronics, a leading semiconductor stock whose share price has surged recently, and 70% in three-year Korean Treasury bonds. It is the only ETF that combines a single domestically listed stock with bonds. With a three-month return of 13.2% and a six-month return of 27.7%, it followed closely behind KODEX 200 US Treasury Bond Mix.

Both KODEX 200 US Treasury Bond Mix and KODEX Samsung Electronics Bond Mix have been chosen by many investors because they allow participation in the domestic stock market's rise while securing stable returns through bond investments. Last year, individual net purchases totaled 4.2 billion won, while banks recorded net purchases of 40.32 billion won.

The net asset value of KODEX 200 US Treasury Bond Mix stands at 816.6 billion won, and that of KODEX Samsung Electronics Bond Mix at 405.4 billion won, bringing the combined net asset value of the two ETFs to over 1.2 trillion won. Since both products can be invested in 100% through personal pension and retirement pension accounts, they have seen strong demand from pension investors who are required to allocate at least 30% to safe assets.

The two ETFs are designed with the primary goal of "controlling volatility through asset allocation," which is the main purpose of bond-mixed ETFs. Since portfolio volatility decreases significantly when managed with a mix of stocks and bonds, compared to investing solely in domestic stocks, these products are considered suitable for personal pension and retirement pension accounts that require stable management. Another advantage is that investors can benefit from the upward momentum of the KOSPI 200 and Samsung Electronics, which are leading the domestic stock market rally, while also receiving interest income from bonds.

KODEX Samsung Electronics Bond Mix and KODEX 200 US Treasury Bond Mix pay monthly distributions with a distribution record date set on the 15th of each month. This monthly payout, preferred by individual investors, is designed to provide a variety of cash flow options.

Lim Taehyuk, Head of ETF Management at Samsung Asset Management, introduced the two domestic stock-mixed ETFs as "products suitable for investors who expect the Korean stock market to perform even better in the future and wish to invest stably for the long term." He added, "We will continue to strive to provide better products for investors by launching products with reduced volatility for stable retirement fund management and diversifying the timing of cash flows by paying distributions in the middle of each month."