KB Asset Management Launches Two Korea Value-Up ETFs and Funds Simultaneously

KB Asset Management is launching two Korea Value-Up funds for the first time in the industry, along with an exchange-traded fund (ETF) that utilizes the KRX Korea Value-Up Index. The funds introduced on the 5th are the ‘KB Star Korea Value-Up Index’ and the ‘KB Korea Value-Up Active’ funds.

With growing expectations for the Value-Up program recently, the simultaneous launch of both ETFs and related funds is expected to broaden investors' choices of products.

The ‘KB Star Korea Value-Up Index Fund’ is a passive fund that tracks the representative index of the Value-Up program, the ‘KRX Korea Value-Up Index.’ It consists of 100 stocks selected as companies with excellent corporate value and those expected to enhance corporate value. To track the benchmark index, it invests in stocks and ETFs related to the Value-Up index and uses some alpha strategies to seek excess returns compared to the index.

The ‘KB Korea Value-Up Active Fund’ is an active product that constructs a model portfolio based on internal research and invests in stocks with high Value-Up attractiveness. It quantitatively analyzes dividend yield, total shareholder return rate, valuation, and selects companies actively improving shareholder value. Additionally, it seeks extra returns by substituting stocks expected to have active shareholder returns, even if they are not included in the Korea Value-Up Index.

Lee Seok-hee, Head of Pension WM Division at KB Asset Management, said, "The KB Star Korea Value-Up Index and KB Korea Value-Up Active funds are funds that can benefit from the Value-Up program and will provide efficient investment opportunities." He added, "In the case of the active fund, it is possible to selectively invest in highly attractive stocks within various stock groups compared to the existing Value-Up index, enabling pursuit of returns from a mid- to long-term perspective."

Investors who prefer ETFs over funds can utilize the RISE Korea Value-Up ETF.

The RISE Korea Value-Up ETF is a monthly dividend product that tracks the KRX Korea Value-Up Index. Its total expense ratio is 0.008% per year, making it a low-cost option among ETFs tracking the same index.

Kim Chan-young, Head of ETF Business Division at KB Asset Management, said, "The RISE Korea Value-Up ETF is a product that pursues stable income through monthly dividends on the 15th of each month," and added, "Currently, the dividend yield is slightly higher than that of the KOSPI 200, but if the dividend payout ratio increases through continuous shareholder return policies and dividend cycles diversify like in the U.S., the investment effect of monthly distribution products could be greater."

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