Hanwha Asset Management Lists 'US Big Tech Leverage ETF'

Hanwha Asset Management announced on the 18th that it will list the ‘ARIRANG US Tech 10 Leverage iSelect ETF,’ which focuses on investing in leading US big tech companies and tracks twice the return, on the Korea Exchange. Additionally, it will simultaneously launch a total of three ETFs: the ‘ARIRANG US Tech 10 iSelect ETF,’ which tracks the return of the same underlying index at 1x, and the bond-type ETF ‘ARIRANG 10-Year Treasury Active ETF,’ which invests in 10-year government bonds.

The ‘ARIRANG US Tech 10 Leverage iSelect ETF’ and the ‘ARIRANG US Tech 10 iSelect ETF’ both concentrate investments in 10 leading big tech companies listed on the US Nasdaq market. Both ETFs use the ‘iSelect US Tech 10 Index’ as their underlying index, tracking 2x and 1x the index returns, respectively. The total expense ratios are 0.8% per annum and 0.5% per annum, respectively. The constituent companies are ▲Apple ▲Microsoft ▲Alphabet ▲Amazon ▲Tesla ▲NVIDIA ▲Meta Platforms ▲Broadcom ▲Adobe ▲Cisco Systems.

Global big tech companies are expected to lead future advanced industries such as artificial intelligence, autonomous driving, cloud services, and semiconductors, based on abundant capital and high technological capabilities, recording explosive long-term growth.

The medium- to short-term outlook is also positive. Despite the global tightening stance and recession concerns, these companies have shown solid fundamentals by announcing excellent first-quarter earnings. Hanwha Asset Management explains that growth potential is expected to increase further if liquidity expands following future interest rate cuts.

Meanwhile, as bond prices are expected to rebound due to expectations of interest rate cuts, interest in bond products is also increasing. The ‘ARIRANG 10-Year Treasury Active ETF’ invests in three relatively long-duration 10-year government bonds, allowing investors to seek trading gains when bond prices rise and also expect excess returns through active management.

Kim Seong-hoon, Head of the ETF Business Division at Hanwha Asset Management, forecasted, “As the interest rate hike cycle concludes in the second half of this year, risk asset preference is expected to increase further, and investment demand for global big tech companies will also rise.”

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