Hantoo Asset Management "ACE ETF 2 Types Dominate Top 2 in 6-Month Returns Among Multi-Asset ETFs"

Korea Investment Trust Management announced on the 25th that the 6-month returns of two ACE ETFs investing in multi-asset portfolios have dominated the TOP 2 rankings. The two ETFs ranked first and second are bond-mixed ETFs: ACE Nvidia Bond-Mixed Bloomberg ETF and ACE US Nasdaq 100 Bond-Mixed Active ETF.

According to the Korea Exchange, as of the 24th, the 6-month return of the ACE Nvidia Bond-Mixed Bloomberg ETF was 14.01%. This is the highest figure among 39 multi-asset ETFs listed domestically, significantly surpassing the average return of the same category (4.6%).

The 1-year return of this product was recorded at 61.88%, overwhelming the average (13.39%) and taking the lead. The ACE Nvidia Bond-Mixed Bloomberg ETF is Korea’s first single-stock ETF, concentrating 30% investment in Nvidia, the number one US semiconductor sector by market capitalization, and investing the remaining 70% in domestic bonds to reduce volatility. As of the previous day, Nvidia’s weighting was 32.84%, the highest among domestically listed ETFs holding Nvidia. The domestic bonds included are composed of treasury bonds and monetary stabilization bonds with remaining maturities between 1 month and less than 2 years.

The 6-month return of the ACE US Nasdaq 100 Bond-Mixed Active ETF was 10.80%, ranking second after the ACE Nvidia Bond-Mixed Bloomberg ETF. Its 1-year return was also 27.76%, placing it third among multi-asset ETFs. The ACE US Nasdaq 100 Bond-Mixed Active ETF uses the NASDAQ-100 US T-Bills 30/70 Index, which diversifies investment approximately 30% in the US Nasdaq 100 Index and 70% in US short-term bonds, as its benchmark and aims for outperformance. To achieve excess returns, it also utilizes US Treasury bonds, dollar-denominated corporate bonds, and domestic bonds.

Additionally, the ACE US S&P 500 Bond-Mixed Active ETF ranked fifth among multi-asset ETFs with a 6-month return of 9.09%. Its 1-year return was recorded at 20.25%. This ETF uses the S&P500 and Short-Term Treasury 30/70 Blend Index, which invests approximately 30% in the US S&P 500 Index and 70% in US bonds, as its benchmark. To outperform the benchmark, the bond portion invests in US Treasury bonds, dollar-denominated corporate bonds, and domestic bonds.

Nam Yong-su, Head of ETF Management at Korea Investment Trust Management, stated, "These two ACE ETFs have shown superior performance compared to peers by diversifying investments into high-quality overseas stocks and domestic and international short- to medium-term bonds to reduce volatility. These products are also suitable for long-term investment as they can be invested in up to 100% within retirement pension accounts."

Meanwhile, the two ACE ETFs mentioned in the article are performance-distributing products, and past returns do not guarantee future returns. Principal loss may occur depending on management results.

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