Hantoo Asset Management Releases 2024 ACE ETF Retirement Investment Guidebook

Korea Investment Trust Management announced on the 24th that it has released the 'ACE ETF Pension Investment Guidebook.' This guidebook was updated from the pension investment guidebook published in December last year.

The first update includes an added explanation of the Individual Savings Account (ISA). ISA is a tax-saving account that can be managed by incorporating various financial products, including Exchange-Traded Funds (ETFs). It offers benefits such as tax exemption, separate taxation, and compound interest effects due to tax deferral. When an ISA with a 3-year maturity is terminated, if the entire or part of the investment amount is deposited into a pension savings account, the tax credit deposit limit can be increased up to 3 million KRW, making it highly useful for pension investments.

Secondly, the description of the advantages of using ETFs within pension accounts has been expanded. This is because interest in pension investments using ETFs is increasing across generations, from the growing number of pension investors in their 20s and 30s to middle-aged and older investors approaching withdrawal.

Seunghyun Kim, head of ETF marketing at Korea Investment Trust Management, explained, "ETFs are optimized products for pension investments due to their relatively low fees and benefits from diversified investments. In particular, overseas stock ETFs can be a good alternative because they effectively include foreign stocks that cannot be directly invested in within pension accounts."

Lastly, the introduction of the ACE ETF lineup available for pension investments has been enhanced. While the previous guidebook introduced all ACE ETFs available for investment in pension accounts, the current guidebook provides information on 33 selected ETFs, including ACE US S&P 500 ETF and ACE US Nasdaq 100 ETF.

The guidebook also includes three portfolio composition examples using ACE ETFs: the 'Simple Type,' which uses only stock and bond ETFs; the 'Defensive Type,' which distinguishes between long- and short-term bonds and includes the ACE KRX Gold Spot ETF, which has a low correlation with stocks; and the 'Monthly Dividend Type,' which generates a stable income flow.

Kim stated, "We updated the pension guidebook to provide investors with necessary information in a timely manner. We will continue to strive to offer helpful investment information to investors through guidebooks, the official YouTube channel, and blogs."

The ACE ETF Pension Investment Guidebook can be downloaded from the ACE ETF official website and blog. Additionally, Korea Investment Trust Management is holding an event until the 10th of next month for subscribers of its official YouTube channel to apply for a physical copy of the guidebook. Detailed information about the event can be found on the website and blog.

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