Samsung Asset Management's 3 KODEX TDF Active ETFs..."Net Assets Surpass 100 Billion Won"

Samsung Asset Management announced on the 21st that the net assets of the three KODEX TDF (Target Date Fund) Active funds have exceeded 100 billion KRW. It has been about two years since their listing on June 30, 2022. As of the end of last year, net assets surged more than double from 44 billion KRW to 100.1 billion KRW.

Samsung Asset Management currently manages a total of three KODEX TDF2030/2040/2050 Active ETFs. This year, 47.7 billion KRW of funds flowed into these three products. The inflow into KODEX TDF2050 Active reached 41.9 billion KRW, ranking second among 30 TDF products of the same 2050 vintage. Accordingly, the assets under management of KODEX TDF2050 Active increased to 56 billion KRW, growing rapidly to become the fifth largest among the same vintage TDFs in just over two years since listing.

The strong growth of KODEX TDF Active ETFs is attributed to their higher returns and lower total fees compared to similar TDF-type products, as well as the advantages of ETFs such as clearly specified buy and sell prices, transparent portfolios, and short redemption periods.

The three KODEX TDF Active ETFs construct their portfolios by analyzing the past 10 years of data to combine a risk-open global representative stock index and domestic bonds, which showed the best risk-adjusted returns. In particular, most assets such as stocks and bonds are held through representative domestic and international ETF products, achieving optimal asset allocation at minimal cost. The total fee is very low at around 0.2% to 0.3% annually compared to other TDF products.

Based on this, since listing, these products have shown excellent performance with returns of 34.7% for 2050, 29.1% for 2040, and 22.7% for 2030, ranking among the top in the same vintage TDF category. KODEX TDF2050 Active ranked second overall, following Samsung Korea-Style TDF2050 (UH) which recorded 38.0% during the same period, and KODEX TDF2040 Active also achieved the fourth-best performance overall.

Additionally, due to the nature of ETFs, the three KODEX TDF Active funds allow same-day buying and selling. The details of investment assets are also transparently disclosed in real time. When adjusting the portfolio or withdrawing pension funds, investors do not need to spend about ten days or deal with complicated product details to sell TDF products.

Moreover, the three KODEX TDF Active ETFs can be invested 100% not only in pension savings but also in DC/IRP retirement pensions, just like general TDFs, making them ideal for smart pension investors who use ETF automatic installment investments. Investors actively investing retirement pension assets through DC/IRP are increasing their returns by utilizing KODEX TDF2050 Active, which has a high stock ratio, as a 30% safe asset allocation.

Kim Do-hyung, Head of ETF Consulting at Samsung Asset Management, said, “It is very meaningful that KODEX TDF Active ETFs have overcome the disadvantage of not being designated as default options and have been recognized as major products by pension investors within two years of launch, based on their high returns and convenience.” He added, “As more financial companies recently offer ETF automatic installment services in pension accounts, not only smart pension investors but also general investors will be able to enjoy the various advantages of TDF ETFs more conveniently.”

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