Yuanta Securities Launches 'Global Income EMP Lab' Featuring US ETFs

[Asia Economy Reporter Minji Lee] Yuanta Securities announced on the 16th that it will launch the ‘We Know Global Income EMP Lab,’ which diversifies investments across various global ETFs listed on the US stock market.

The newly introduced ‘We Know Global Income EMP Lab’ is an EMP (ETF Managed Portfolio) product that diversifies investments in related ETFs by adjusting the allocation to various asset classes such as stocks, bonds, and REITs according to the economic cycle phase based on its proprietary asset allocation model. Even if the returns of certain assets underperform, it invests in asset classes with low correlation to offset losses from other assets, maintaining a stable return flow. In a situation where interest rate hikes are a hot topic, the goal is to pursue steady income returns along with capital gains by incorporating high-dividend ETFs together with ETFs that can hedge against inflation.

To this end, the universe is managed with about 200 US-listed ETFs that pay high distributions monthly or quarterly, including high-dividend stocks, preferred stocks, high-yield bonds, emerging market bonds, and REITs. The portfolio is constructed mainly around ETFs expected to increase distributions in the future through refined market judgment and promising asset analysis.

If the account valuation amount exceeds the invested principal as of the last trading day of the year, a service is provided to pay the profit in advance to an account designated by the customer, allowing the realization of profits like dividends as income occurs.

Juhyung Kim, Head of Customer Asset Management Division, said, “The We Know Global Income EMP Lab has the advantage of enabling global diversification by investing in various ETFs listed on the US stock market,” and added, “We will strive to provide customers with steady income returns even in a situation where financial market volatility has increased by constructing a portfolio centered on ETFs that pay consistent distributions over the long term.”

The minimum subscription amount is 10 million KRW. Fees for the general type are charged with a 1% upfront fee once and 0.4% quarterly (1.6% annually) in arrears, while the performance fee type charges a 1.2% upfront annual fee and collects performance fees agreed upon with the customer.

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