KB Asset Management's 'US Major Index ETF' Surpasses 700 Billion KRW in Net Assets

The total net asset value of the U.S. flagship index exchange-traded funds (ETFs) managed by KB Asset Management, ‘KBSTAR U.S. S&P500 ETF’ and ‘KBSTAR U.S. Nasdaq100 ETF,’ has surpassed 700 billion KRW.

According to KB Securities on the 21st, the two ETFs are products that invest in the actual indices of the U.S. flagship indices, Standard & Poor's (S&P) 500 and Nasdaq 100, respectively. Since lowering the management fee to 0.001% in 2021, the lowest level among global products tracking the same indices, funds have been steadily flowing in.

Looking at the ‘Total Expense Ratio (TER)’ disclosed by the Korea Financial Investment Association, ‘KBSTAR U.S. S&P500’ has an annual rate of 0.10%, and ‘KBSTAR U.S. Nasdaq100’ has an annual rate of 0.14%. This is the lowest level among U.S. index tracking products listed domestically.

The Total Expense Ratio (TER) includes the total management fees as well as other expenses and brokerage commissions. In other words, it represents the ‘actual fee cost level borne by investors.’ The lower this value, the more cheaply the ETF is managed.

‘KBSTAR U.S. S&P500 ETF’ and ‘KBSTAR U.S. Nasdaq100 ETF’ also increased investment utility by changing the distribution payment dates from January, April, July, and October to March, June, September, and December starting December last year. Generally, ETFs provide dividends and interest generated from the stocks or bonds included to investors as distributions.

For pension investors or retirees who mainly received distributions from the S&P500 and Nasdaq ETFs in January, April, July, and October, these two products now offer a wider choice of distribution cycles.

Kim Chan-young, Head of ETF Business Division at KB Asset Management, explained, “For investing in U.S. flagship indices through individual or retirement pension accounts, products investing in the actual indices rather than futures are suitable. Especially for long-term installment investments, differences in fees and costs can significantly affect long-term performance, so it is advisable to carefully compare the costs of similar products.”

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