Hantoo Asset Management, ACE US WideMoat Equal Weight... "Top Return Among Equal Weight ETFs"

Korea Investment Trust Management announced on the 10th that the ACE US WideMoat Equal Weight Exchange-Traded Fund (ETF) recorded the highest year-to-date return among domestically listed ETFs classified as equal weight type.

According to FnGuide, as of the previous day, the year-to-date return of the ACE US WideMoat Equal Weight ETF was 26.90%. This is the highest level among the eight products classified as equal weight type in the Koscom ETF CHECK. During the same period, the average return of equal weight type ETFs was only 0.09%.

The ACE US WideMoat Equal Weight ETF has consistently shown excellent performance since its listing. The cumulative returns over the past 1 year, 3 years, and 5 years were 33.19%, 59.70%, and 123.08%, respectively. The return since listing reached 184.08%.

The ACE US WideMoat Equal Weight ETF is a product that invests based on the concept of Economic Moat emphasized by Warren Buffett. It selects and invests in companies listed in the US market that have sustainable competitive advantages and undervalued appeal. As the underlying index, it tracks the Morningstar Wide Moat Focus Price Return Index, which is the same as the VanEck Morningstar Wide Moat ETF known as the ‘MOAT ETF’ in the US.

This year, the ACE US WideMoat Equal Weight ETF also changed its dividend payment method and product name. Considering the increased demand for dividend products from investors, the dividend payment method was changed to quarterly dividends in May. Previously, dividends were not paid but reinvested. Additionally, to intuitively reflect the management method, the product name was changed from ‘ACE US WideMoat Value Stock ETF’ to ‘ACE US WideMoat Equal Weight ETF.’

Since changing to quarterly dividends, dividends of around 100 KRW per share have been paid three times. Since the intuitive name change, the net asset value has increased by approximately 26.5 billion KRW.

Nam Yong-su, Head of ETF Management at Korea Investment Trust Management, said, “As volatility in domestic and international markets intensifies, interest in investment destinations that can rise steadily in the long term is increasing. The ACE US WideMoat Equal Weight ETF has the advantage of selecting companies with excellent earnings quality and unique competitive advantages based on five factors: intangible assets, cost advantage, switching costs, network effects, and efficient scale.”

He added, “When investing through pension accounts, it is possible to generate cash flow through quarterly dividends and also expect tax benefits.”

Meanwhile, the ACE US WideMoat Equal Weight ETF is a performance dividend-type product, and past returns do not guarantee future returns. Principal loss may occur depending on management results.

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