'KODEX US S&P500 TR ETF' Net Assets Surpass 500 Billion KRW

[Asia Economy Reporter Hwang Junho] Samsung Asset Management announced on the 22nd that the net assets of the ‘Samsung KODEX US S&P500 TR Exchange-Traded Fund (ETF)’, which tracks the representative US index, have surpassed 500 billion KRW.

According to fund evaluator FnGuide, as of the 19th, the net assets of this ETF amount to 505.9 billion KRW. Despite the market adjustment period, it exceeded 500 billion KRW for the first time in 16 months since April last year.

This product invests in 500 large-cap stocks representing the US market. Among US S&P500-related ETFs, it is the only Total Return (TR) type ETF available domestically, where cash dividends are reinvested. Since inception, it has recorded an excellent return of 25.5%. It is a currency-exposed product with a total expense ratio of 0.05% per annum.

Using TR ETFs offers the advantage of enjoying compound interest benefits and tax deferral benefits when the index trends upward over the long term. While typical ETFs distribute dividends quarterly as cash payments, TR ETFs immediately reinvest dividends received from constituent stocks back into the entire index, allowing investors to benefit from compound returns in addition to the underlying index appreciation.

Also, in the case of general ETFs, investors must pay a 15.4% dividend income tax each time dividends are received, but with TR ETFs, since dividends are reinvested, taxes are deferred until the ETF is sold, so no separate dividend income tax is paid beforehand.

The Samsung KODEX US S&P500 TR ETF is suitable for long-term investors who want to actively reinvest cash dividends. Therefore, it can be invested in not only general accounts but also pension savings and retirement pension accounts, and with its low fees, it is ideal as a pension investment product.

Im Taehyuk, Head of ETF Operations at Samsung Asset Management, stated, "We expect the buying momentum from investors who highly value the compound investment and tax deferral effects of TR ETFs, abundant liquidity, and low fees to continue steadily in the future."

Meanwhile, Samsung Asset Management holds a total of seven Total Return (TR) ETFs. These include ▲KODEX US S&P500 TR, ▲KODEX US Nasdaq100 TR, ▲KODEX MSCI KOREA TR, ▲KODEX KOSPI TR, ▲KODEX 200 TR, ▲KODEX 200 IT TR, and ▲KODEX Top5Plus TR.

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