Korea Investment Trust Management's Two Monthly Dividend ACE ETFs Surpass 1 Trillion KRW in Net Asset Value

ACE US 30-Year Treasury Active (H) and US Dividend Dow Jones
Monthly Dividend ETF Product with the Largest Net Asset Value 'ACE ETF'
"Various Lineups Including Stocks, Bonds, and Mixed Types"

Korea Investment Trust Management announced on the 20th that the combined net asset value of two monthly dividend-type exchange-traded funds (ETFs) has surpassed 1 trillion KRW. The two products are ‘ACE US 30-Year Treasury Active (H)’ and ‘ACE US Dividend Dow Jones’.

As of the 19th, the combined net asset value of the two monthly dividend-type ACE ETFs is 1.0306 trillion KRW. The net asset value by product is 800.2 billion KRW for the ACE US 30-Year Treasury Active (H) ETF and 230.4 billion KRW for the ACE US Dividend Dow Jones ETF. The ACE US 30-Year Treasury Active (H), Korea Investment Trust Management’s first monthly dividend-type ETF launched in March last year and the country’s first physical US long-term bond ETF, increased its net asset value to 800 billion KRW in less than a year since its listing. It is the largest among the 44 monthly dividend-type ETFs overall.

The benchmark index for the ACE US 30-Year Treasury Active (H) ETF is the ‘Bloomberg US Treasury 20+ Year Total Return Index,’ which includes US-issued 30-year treasury bonds with a remaining maturity of 20 years or more. The US long-term bond ETF continues to attract individual investor funds due to the bond interest income of the US 20-year treasury bond at around 4% annually and the expectation of bond valuation gains from interest rate cuts. Since its listing, the net purchase amount recorded by individual investors is 413.2 billion KRW, of which 103.5 billion KRW has flowed in this year alone. The net purchase of 103.5 billion KRW by individuals since the beginning of the year ranks third among 828 ETFs in total.

The ACE US Dividend Dow Jones ETF is a product that Korea Investment Trust Management first introduced domestically in 2021 among ETFs of the same type, and in September last year, it changed its dividend method from quarterly to monthly dividends. The underlying index is the ‘Dow Jones U.S. Dividend 100 Price Return Index.’ This index selects and invests in 100 companies listed on the New York Stock Exchange and NASDAQ that have paid dividends for over 10 years, focusing on companies with strong fundamentals, high dividend yields, and high 5-year dividend growth rates.

Seunghyun Kim, ETF Consulting Manager at Korea Investment Trust Management, introduced, "The ACE ETF lineup includes not only the ACE US 30-Year Treasury Active (H) ETF and ACE US Dividend Dow Jones ETF but also the ACE US High Yield Active (H) ETF and ACE Global Income TOP10 SOLACTIVE ETF, totaling four monthly dividend-type products." He added, "We have launched various types of monthly dividend products, including equity, bond, and mixed asset types, and as a result of efforts to expand investor choices, net purchases by individual investors through pension accounts continue."

The ACE US High Yield Active (H) ETF, listed in April last year, is the country’s first physical operation advanced country high-yield product, mainly investing in US dollar (USD)-denominated high-yield ETFs listed in the US. The ACE Global Income TOP10 SOLACTIVE ETF, launched in July last year, invests in 10 US-listed global ETFs with excellent distribution yields and distribution consistency to reduce volatility.

Kim said, "Investing in monthly dividend-type ACE ETFs, which can enjoy the compound effect of dividend reinvestment, through pension accounts can also provide tax deferral benefits."

All four ACE ETFs are performance dividend-type products, and principal loss may occur depending on management results.

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