Korea Investment Management ACE 200 ETF NAV Surpasses 1.5 Trillion Won

Up 49.21% This Year
Quarterly Distribution, TR Options for Different Investor Profiles

Korea Investment Management announced on the 26th that the net asset value (NAV) of the ACE 200 Exchange-Traded Fund (ETF) has surpassed 1.5 trillion won.

According to the Korea Exchange, as of the previous day (25th), the NAV of the ACE 200 ETF stood at 1.5209 trillion won. This is the first time since its listing in 2008 that the ETF's NAV has exceeded 1.5 trillion won.

The NAV of the ACE 200 ETF has more than doubled this year alone. As of the end of last year, the ETF’s NAV was only 708.1 billion won. The continued strength of the domestic stock market since the beginning of the year has led to inflows into the ETF. Year-to-date, inflows into the ACE 200 ETF amount to 382.1 billion won.

The ACE 200 ETF has posted a return of 49.20% this year alone, while its cumulative 1-year and 3-year returns are 165.58% and 201.24%, respectively. Since its listing in 2008 through today, its total return has reached 528.66%.

There are also various options available depending on investment preferences. In addition to the ACE 200 ETF, which invests in the regular direction and pays distributions on a quarterly basis, there is the ACE 200TR ETF, which automatically reinvests distributions; the ACE Leverage ETF, which tracks twice the daily return of the KOSPI 200 Index; and the ACE Inverse ETF, which tracks the daily return of the KOSPI 200 Index at -1 times.

Among the four KOSPI 200 investment products, those that can be purchased in pension accounts are the ACE 200 ETF and the ACE 200TR ETF. Both products can be held up to a 70% limit in defined contribution (DC) retirement pension plans and individual retirement pension (IRP) accounts.

Korea Investment Management lowered the fees on the two products in July last year to enhance their usability within pension accounts. The annual total expense ratio of the ACE 200 ETF was reduced from 0.09% to 0.017%, and the fee for the ACE 200TR ETF was cut from 0.03% to 0.01%.

Nam Yongsoo, Head of ETF Portfolio Management at Korea Investment Management, said, "We expect the upward trend in the domestic stock market to continue this year, supported by policies aimed at resolving undervaluation in the domestic market and increased foreign buying," adding, "By investing in products such as the ACE 200 ETF and ACE 200TR ETF, investors can seek to benefit from the rise in the domestic stock market at low cost."