'KODEX TRF 3070' Mixed ETF First to Surpass 100 Billion KRW in Net Assets

[Asia Economy Reporter Junho Hwang] Samsung Asset Management announced on the 3rd that the net assets of KODEX TRF3070 surpassed 100 billion KRW (1,007 billion KRW as of the 2nd, according to FnGuide), becoming the first domestic mixed ETF to do so.

This is the first time in the history of domestic ETFs that the net assets of a mixed ETF have exceeded 100 billion KRW.

In fact, the net assets of KODEX TRF3070 increased by approximately 78.2 billion KRW over 10 months from 22.5 billion KRW at the beginning of the year, showing a growth rate of 348%. The returns have also been stable, with 4.15% last year and 5.65% since the beginning of this year.

Samsung Asset Management stated, "Since its listing in July 2019, KODEX TRF3070 has shown an increase in net assets due to the surge in ETF investment demand in the retirement pension market," and analyzed that "it appears to have established itself as a representative product for the MZ generation."

TRF stands for Target Risk Fund, a type of asset allocation fund that mixes risky assets and safe assets. It is characterized by maintaining proportions of risky assets (developed country stocks) and safe assets (domestic bonds) to keep the fund's risk level at a certain standard.

The KODEX TRF series consists of three types, with product names determined by the investment ratio in developed country stocks and domestic bonds. KODEX TRF3070 invests 30% in developed country stocks and 70% in domestic bonds. KODEX TRF5050 allocates 50% to each. KODEX TRF7030 invests 70% in developed country stocks and 30% in domestic bonds. Investors can choose among the three TRF series products by deciding their investment ratio in developed country stocks and domestic bonds according to their risk preference.

Samsung Asset Management revealed that KODEX TRF3070 is the most popular because it is classified as a safe asset in retirement pensions and can be invested up to 100% of retirement pension reserves. Although classified as a safe asset, it allows investing 30% of total assets in developed country stocks.

Park Sungcheol, ETF manager at Samsung Asset Management, explained, "The KODEX TRF series was designed from the start to be suitable for pension investments, and due to the asset allocation effect, the probability of principal loss is very low for long-term investments regardless of the investment timing," adding, "It is a good product for long-term investment in retirement pensions, whether lump-sum or installment."

In fact, for KODEX TRF3070, based on the tracked index, testing from 2001 to the end of October 2021 showed that the probability of principal loss over a 3-year holding period was 0%, regardless of the investment timing.

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