Hantoo Asset Management ACE Monthly Dividend ETF 4 Types Surpass 800 Billion KRW in Net Asset Value

Korea Investment Trust Management announced on the 20th that the combined net asset value of the four ACE monthly dividend exchange-traded funds (ETFs) has surpassed 800 billion KRW. The four ETFs are 'ACE US 30-Year Treasury Active (H)', 'ACE US Dividend Dow Jones', 'ACE US High Yield Active (H)', and 'ACE Global Income TOP10 SOLACTIVE'.

According to the Korea Exchange, the combined net asset value of the four ACE monthly dividend ETFs first exceeded 800 billion KRW on the 15th, reaching 806.8 billion KRW. As of now, the combined net asset value of the four ETFs is 813.6 billion KRW. The net asset values by product are ▲ACE US 30-Year Treasury Active (H) ETF 603.5 billion KRW ▲ACE US Dividend Dow Jones ETF 192.9 billion KRW ▲ACE US High Yield Active (H) ETF 9.1 billion KRW ▲ACE Global Income TOP10 Solactive ETF 8.1 billion KRW.

The ACE US 30-Year Treasury Active (H) ETF is Korea Investment Trust Management’s first monthly dividend ETF. It is the first domestic physical US long-term bond ETF, with the benchmark index being the ‘Bloomberg US Treasury 20+ Year Total Return Index’. It includes US-issued 30-year treasury bonds with a remaining maturity of 20 years or more. Expectations for a US interest rate cut next year have increased, leading individual investors to net buy the largest amount among domestic bond ETFs this year (300 billion KRW). In particular, from early October to the 15th, there was a continuous net buying trend by individuals for 50 consecutive trading days.

The ACE US Dividend Dow Jones ETF was the first ETF of its kind listed domestically in 2021. In September, its dividend method changed from quarterly to monthly dividends. The underlying index is the 'Dow Jones U.S. Dividend 100 Price Return Index', which selects 100 companies listed on the New York Stock Exchange and NASDAQ that have paid dividends for over 10 years and have strong fundamentals, focusing on those with high dividend yields and 5-year dividend growth rates.

The ACE US High Yield Active (H) ETF is the first domestic physical advanced country high yield ETF, primarily investing in US dollar (USD) denominated high yield ETFs listed in the US. The ACE Global Income TOP10 SOLACTIVE ETF invests in five equity ETFs and five bond ETFs among US-listed global ETFs with high distribution yields and consistent distributions. By investing simultaneously in stocks and bonds, it is expected to reduce the overall portfolio volatility through asset allocation.

Kim Chan-young, Head of Digital ETF Marketing at Korea Investment Trust Management, said, "The characteristic of monthly dividend ETFs to generate monthly cash flow combined with the unique elements of ACE ETFs has led to rapid growth in net asset value in the market. Monthly dividend ETFs allow investors to receive dividends earlier compared to quarterly or annual dividend products, which enhances the compound effect of dividend reinvestment. Especially when investing through pension accounts, investors can benefit from compound effects and tax deferral."

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