Hanwha Asset Management Lists Three 'Korea-US-Japan' Targeting PLUS ETFs

Hanwha Asset Management announced on the 13th that it will list three exchange-traded funds (ETFs) targeting Korea, the United States, and Japan. These are the first products launched under the brand name 'PLUS,' which was rebranded last month on the 23rd.

On the same day, Hanwha Asset Management listed three ETFs on the Korea Exchange: 'PLUS High Dividend Covered Call,' 'PLUS Japan Yen Ultra-Short-Term Government Bonds (Synthetic),' and 'PLUS Global AI Infrastructure.'

'PLUS High Dividend Covered Call' is a product that seeks to maximize income by adding a 'weekly call option selling strategy' to 'PLUS High Dividend,' the largest domestic equity dividend ETF. It aims to pay monthly distributions of 1.2%, or 14.4% annually, by combining dividend income with option premiums earned from selling call options twice a week (eight times a month).

Notably, compared to overseas dividend and covered call ETFs, such as those in the U.S. that have recently attracted much investor interest, this product offers a 'tax-saving effect' when receiving dividends. Unlike abroad, capital gains from trading domestic exchange-traded derivatives are not taxed, so investors can enjoy tax-exempt benefits when distributing premiums earned from selling call options.

'PLUS Japan Yen Ultra-Short-Term Government Bonds' is a currency-exposed ETF investing in Japan's ultra-short-term government bonds. It allows investors to benefit from the appreciation effect by investing in the weak yen and also aims to capture increased bond interest income if Japanese interest rates rise in the future.

Additionally, this product is a bond-type ETF that can be invested in 100% through all accounts with tax benefits. Compared to yen futures ETFs, which cannot be invested in through retirement pension accounts, or yen deposits, which are not available in ISA (Individual Savings Account) accounts, this product is optimized for 'yen investment' through tax-advantaged accounts.

'PLUS Global AI Infrastructure' invests 25%, the largest proportion among domestically listed ETFs, in Nvidia, which manufactures GPUs (graphics processing units) and AI accelerators that form the foundation of AI (artificial intelligence) infrastructure. The remaining 75% is invested in ETFs related to 'AI servers & networks,' 'power infrastructure,' and 'cooling systems' used in AI data centers.

While AI investment centered on semiconductors began with the emergence of 'OpenAI' from 2022 to 2023, AI investment is expected to expand into AI infrastructure starting in 2024. This is because investment in AI infrastructure, which encompasses high-performance network equipment used in data centers, power infrastructure for the massive power supply of data centers, and cooling systems for efficient energy use in data centers, is essential.

Geum Jeong-seop, Head of the ETF Business Division at Hanwha Asset Management, emphasized, "The three newly listed Korea-US-Japan ETFs are products that significantly differentiate themselves from existing products by embodying the unique ideas and philosophy of our PLUS ETFs."

He continued, “In the case of the High Dividend Covered Call, it is a product optimized for investment in the domestic box market, maximizing stability and income by adding weekly call option selling to the PLUS High Dividend portfolio, which has a long-term proven track record.”

He also stated, “The Japan Yen Ultra-Short-Term Government Bonds is the only existing product that allows investment in yen appreciation through all accounts eligible for ETF investment, and it is expected to broaden the investor base.”

Finally, Geum added, “The Global AI Infrastructure portfolio is composed of Nvidia, which has shown the most remarkable growth within the major AI megatrend, and stocks related to AI data center infrastructure with promising growth potential. This presents a new AI investment strategy that moves beyond the traditional semiconductor-focused AI investment approach.”

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