KB Asset Management Lowers Fees for 13 Types of ‘RISE ETF’

KB Asset Management announced on the 30th that it will lower the total expense ratio of 13 types of ‘RISE Exchange-Traded Funds (ETFs)’ suitable for pension investments to 0.01% per year starting on the 31st. Going forward, investors will be able to invest in RISE ETFs at the industry's lowest fee levels through retirement pension and pension savings accounts.

The 13 fee-reduced products include ETFs tracking major U.S. indices such as ‘RISE US S&P 500’ and ‘RISE US Nasdaq 100’, as well as global thematic ETFs like ‘RISE US AI Value Chain TOP3Plus’, ‘Global Realty Income’, and ‘Berkshire Portfolio TOP10’.

This reflects the fact that many investors seek overseas products (taxable) rather than domestic equity-type (tax-exempt) products by utilizing the tax benefits of pension accounts. Since pension accounts cannot directly purchase ETFs listed overseas, investors must choose overseas ETFs listed domestically.

With this fee reduction, the investment barrier has been lowered for popular U.S. index products such as ‘RISE US S&P 500’ and ‘RISE US Nasdaq 100’. Thanks to growing interest in products tracking major U.S. indices, these two ETFs recently surpassed a combined net asset value of 1 trillion KRW.

Additionally, global thematic ETFs included in the fee reduction group, such as ‘RISE US AI Value Chain TOP3Plus’?the first product launched under the RISE ETF rebranding on the 23rd?‘US Semiconductor NYSE’, ‘US S&P Dividend King’, ‘Global Realty Income’, ‘Berkshire Portfolio TOP10’, ‘Global Asset Allocation Active’, and ‘TDF 2030·2040·2050 Active’, are expected to reduce the investment burden compared to before.

On the 17th of this month, KB Asset Management changed its ETF brand name to ‘RISE’ and completely revamped its business direction and brand strategy. ‘RISE’, meaning ‘Rise Tomorrow’, expresses the commitment to help individual investors make healthier pension investments.

The company described the fee reduction decision as ‘the first step to becoming the pension investment partner for all citizens.’ It aims to broaden product choices for pension investors and provide opportunities to grow assets with low fees.

Kim Chan-young, Head of the ETF Business Division at KB Asset Management, said, "This fee reduction is a choice to minimize investors’ cost burdens and create an environment favorable for long-term investment." He added, "We will continue to offer customized investment solutions through ‘RISE ETFs’ so that investors can invest their pensions stably and prepare for the future."

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