KB Asset Management's Two US Major Index ETFs Surpass 1 Trillion KRW in Net Assets

KB Asset Management announced on the 4th that the combined net assets of the U.S. flagship index exchange-traded funds (ETFs), ‘KBSTAR U.S. Nasdaq 100 ETF’ and ‘KBSTAR U.S. S&P 500 ETF,’ have surpassed 1 trillion KRW.

Currently, KB Asset Management operates seven ETFs investing in major overseas indices including Korea, the U.S., China, Europe, and Hong Kong, all at industry-lowest fee levels.

The ‘KBSTAR U.S. Nasdaq 100 ETF’ is a product that invests physically in the Nasdaq 100, one of the major U.S. indices. It invests in over 100 leading tech stocks by market capitalization, including Apple, Google, Microsoft, Amazon, and Nvidia.

The ‘KBSTAR U.S. S&P 500 ETF’ tracks the S&P 500 index. The S&P 500 index consists of 500 large-cap companies representing the U.S. stock market and accounts for about 80% of the total U.S. stock market capitalization.

The total expense ratios for investing in the ‘KBSTAR U.S. Nasdaq 100 ETF’ and ‘KBSTAR U.S. S&P 500 ETF’ are 0.18% and 0.14% per annum, respectively, making them the most affordable products tracking the same indices listed domestically.

This refers to the “actual fee level borne by investors” disclosed by the Korea Financial Investment Association, which includes all costs such as management fees, total fees, other expenses, and brokerage commissions.

Both products changed their distribution payment dates from January, April, July, and October to March, June, September, and December starting December last year to enhance investment usability. Generally, ETFs distribute dividends and interest generated from the underlying stocks or bonds to investors as distributions.

For pension investors or retirees who typically received distributions from ETFs on January, April, July, and October, KB Asset Management’s U.S. flagship index products now offer more options regarding distribution cycles.

Kim Chan-young, Head of the ETF Business Division at KB Asset Management, explained, “For investing in U.S. flagship indices through personal and retirement pension accounts, products investing in physical indices rather than futures are more suitable,” adding, “We will continue our efforts to enable individuals to invest in pensions over the long term with the lowest fees in Korea.”

Meanwhile, KB Asset Management is rebranding its ETF brand to ‘RISE’ and embarking on a new leap forward. Starting from the 17th, the 109 ETFs listed by KB Asset Management will change their brand name from ‘KBSTAR’ to ‘RISE’ collectively. For example, the ‘KBSTAR U.S. Nasdaq 100’ ETF will become the ‘RISE U.S. Nasdaq 100’ ETF.

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