KB Securities "ISA Customer Assets Have the Highest Proportion in Stocks and ETFs"

Analysis of Asset Composition and Investment Items for Intermediary ISA Customers

KB Securities announced on the 9th that an analysis of the asset composition and investment items of customers with brokerage-type Individual Savings Accounts (ISA) showed that stocks and Exchange-Traded Funds (ETFs) have the highest proportions.

Looking at the asset composition of KB Securities brokerage-type ISA investors (as of the end of October 2024), stocks account for 39.8%, ETFs 27.9%, deposits 10.7%, bonds 7.1%, Repurchase Agreements (RP) 7.0%, derivative-linked securities 4.0%, funds 2.8%, and REITs 0.8%. The investment proportions in stocks and ETFs are the highest, and the share of interest rate products (bonds, RP) increased from 10.4% at the end of last year to 14.1%.

Examining the investment items of KB Securities brokerage-type ISA investors, stocks with the highest investment amounts were Samsung Electronics common stock, Macquarie Infrastructure, and Samsung Electronics preferred stock, in that order. For ETFs, the top investments were TIGER US S&P 500, TIGER US Dividend Dow Jones, and TIGER US Nasdaq 100, with brokerage-type ISA investors mainly purchasing ETFs that invest in US indices.

Brokerage-type ISA investors appear to have a relatively high preference for dividend-oriented stocks and overseas ETFs. There is an increasing demand from investors aiming to maximize tax-saving effects by investing in domestic dividend stocks, overseas stock ETFs, and interest rate products such as government bonds.

The brokerage-type ISA is an account that allows integrated management by freely operating various financial products (funds, ELS, RP, etc.), domestic listed stocks, and ETFs within a single account. In particular, if the mandatory holding period of three years is met and the account is closed, tax exemption benefits of up to KRW 4 million (for the basic type for low-income earners) can be received, and a separate tax rate of 9.9% is applied to amounts exceeding this, which can further increase the actual yield.

Additionally, investors can utilize various tax-saving strategies tailored to their investment preferences and preferred product types through the brokerage-type ISA.

Dividend income-preferring investors can reduce dividend income tax by investing in dividend stocks or dividend stock funds, while overseas stock investors can enjoy capital gains tax savings by investing in overseas index ETFs and overseas stock thematic ETFs listed domestically. For investors seeking steady and stable cash flow, interest rate products such as bonds, repurchase agreements (RP), and equity-linked bonds (ELB) can be utilized.

Yoon Man-chul, Head of Customer Solutions Division at KB Securities, stated, "Recently, investments using brokerage-type ISAs have been meeting diverse investor demands and are becoming a new investment culture. Going forward, KB Securities plans to actively provide various products and useful services that align with new investor trends."

Meanwhile, KB Securities is recruiting up to KRW 10 billion for the 'Brokerage-type ISA Exclusive Special ELB' starting from the 9th. This special ELB is based on Samsung Electronics common stock as the underlying asset, with a 6-month maturity and offers a minimum pre-tax annual return of 5.0% up to a maximum of 5.01% upon meeting conditions. Subscriptions can be made starting from KRW 1 million in increments of KRW 100,000. If subscription demand exceeds supply, allocation will be proportionally distributed based on each investor's subscription amount, and any remaining amount after allocation will be refunded on the subscription closing date. This is the final round, and the previous special ELBs with the same structure (a total of 5 rounds amounting to KRW 50 billion) sold out completely since October.

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