KB Asset Management Expands ETF Lineup... Including Non-Memory Active ETF and More

[Asia Economy Reporter Hwang Junho] KB Asset Management announced on the 24th that it will expand its ETF lineup. KB Asset Management will newly list three bond ETFs on the 26th. Next month, it will also list an active ETF related to non-memory and a contact-related ETF.

The bond ETFs include KBSTARKIS Comprehensive Bond (A-grade or higher) Active, which seeks excess returns compared to the entire domestic bond market; KBSTAR KIS Short-Term Comprehensive Bond (AA-grade or higher) Active, which invests in the short-term bond market; and KBSTAR KIS Treasury Bond 30-Year Enhanced ETF, which invests approximately 130% in 30-year government bonds using RP.

In the global ETF market, bond ETFs are one of the fastest-growing sectors. Related assets, which were only 11 trillion won in 2009, grew 120 times to 1,320 trillion won last year. The domestic bond ETF market is also rapidly expanding. This year, net assets increased by 1.3 trillion won, growing more than 20% compared to the previous year.

The KBSTAR KIS Treasury Bond 30-Year Enhanced ETF is the first product in Korea to focus on 30-year government bonds, the longest maturity among domestic bonds. It invests in recently issued 30-year government bonds and uses a strategy of selling RP to additionally purchase about 30% more 30-year government bonds. The 30-year government bond is a bond that insurance companies must purchase to prepare for long-term liabilities to policyholders. When investing in this ETF, the same investment amount effectively results in 130% investment in 30-year government bonds, which is expected to attract institutional investors' interest.

The non-memory ETF is an equity active ETF that invests in domestic stocks related to system semiconductors, which account for 74% of the global semiconductor market. The system semiconductor market is a core component industry of the Fourth Industrial Revolution, including artificial intelligence, IoT, and autonomous vehicles.

Geum Jeongseop, Head of ETF Strategy at KB Asset Management, said, "If insurance companies invest the same amount in 30-year government bonds and the KBSTARKIS Treasury Bond 30-Year Enhanced ETF, the RBC improvement effect will be higher with ETF investment, so there will likely be investment demand." He added, "From the perspective of individual investors, with a bond maturity yield of about 2.8%, it will be possible to pursue higher returns compared to bank deposits when held long-term in personal pension or IRP accounts."

This content was produced with the assistance of AI translation services.