KB Asset Management Launches "RISE Samsung Electronics SK Hynix Bond Mixed 50 ETF"

KB Asset Management announced on the 26th that it has launched the "RISE Samsung Electronics SK Hynix Bond Mixed 50" exchange-traded fund (ETF), the first of its kind in Korea, which focuses investments on Samsung Electronics and SK Hynix, the country’s leading semiconductor companies, while enhancing stability through bond investments.

The RISE Samsung Electronics SK Hynix Bond Mixed 50 ETF allocates 25% each to Samsung Electronics and SK Hynix, with the remaining 50% invested in high-quality bonds such as short-term Korean Treasury bonds, making it a bond-mixed ETF.

The key feature is that it maximizes exposure to Samsung Electronics and SK Hynix, which play a pivotal role in the artificial intelligence (AI) semiconductor market, while dispersing risk compared with investing in a single stock. It is structured to be suitable for pension assets by considering both growth potential and stability.

This ETF is classified as a safe asset under defined contribution (DC) and individual retirement pension (IRP) regulations. Under the current system, retirement pension accounts are subject to a 70% cap on investments in risky assets such as equity-type ETFs, and the remaining 30% must be invested in safe assets such as principal-protected products or bond-mixed products. Although the RISE Samsung Electronics SK Hynix Bond Mixed 50 has a 50% equity allocation, it is recognized as a bond-mixed product, allowing it to be held up to 100% in retirement pension accounts. By utilizing this, investors can effectively increase the actual equity exposure of the entire account to more than 70%. This ETF can be traded not only in retirement pension accounts but also in regular brokerage accounts and Individual Savings Accounts (ISA).

Yuk Donghwi, Head of ETF Product Marketing at KB Asset Management, said, "The RISE Samsung Electronics SK Hynix Bond Mixed 50 ETF is a product that allows investors to tap into the growth drivers of Korea’s leading semiconductor companies while simultaneously securing the level of stability required for pension assets through bond investments," adding, "It will be an efficient alternative for investors who seek a more proactive asset allocation within their retirement pension accounts."