KODEX US S&P500 Technology Outperforms Nasdaq 100 Returns

Effect of Concentrated Investment in 65 Leading US Tech Stocks Including MS and Apple

Samsung Asset Management announced on the 7th that the 6-month return of the 'KODEX US S&P500 Technology ETF,' which was listed last August, was 21.8%, outperforming all 24 general ETFs (passive type) tracking the Nasdaq 100 Index and S&P 500 Index listed in Korea. The 3-month return of 21.0% and 1-month return of 11.6% were also relatively high.

The index tracked by KODEX US S&P500 Technology is the 'S&P500 Technology Index.' It consists of 65 companies belonging to the 'Technology' sector, one of the 11 sectors of the S&P500 Index.

In the US, the 'Technology Select Sector SPDR Fund' (XLK ETF), which tracks this index, has shown not only mid- to short-term returns but also long-term returns over 10 years that outperform the representative ETFs QQQ and SPY, which track the Nasdaq 100 Index and S&P 500 Index.

The S&P500 Technology Index rose 560.7% over 10 years. During the same period, the S&P500 and Nasdaq 100 increased by 227.6% and 439.1%, respectively.

The reason the S&P500 Technology Index has higher returns across all periods than the S&P500 Index as well as the Nasdaq 100 Index, which is regarded as a representative technology sector index, is due to its strong characteristic as a pure IT index investing 100% in 65 global technology companies. Additionally, it invests nearly 50% in Microsoft and Apple, which fiercely compete for the number one market capitalization spot in the US stock market. The more intense the market capitalization competition among these world-class leading technology companies becomes, the higher the product's returns rise.

KODEX US S&P500 Technology is considered a suitable product for young and middle-aged investors who need long-term installment investments. For long-term investors, using ISA accounts or pension savings, DC/IRP accounts, which offer low tax rates and tax deferral effects, can be more effective.

Han Dong-hoon, a manager at Samsung Asset Management, introduced, "KODEX US S&P500 Technology is an essential product for long-term investors who want relatively high performance compared to general index ETFs like SPY or QQQ, while feeling burdened by the high return volatility of thematic ETFs."

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