PLUS US S&P 500 Growth Stock ETF Lowers Fees Further

Hanwha Asset Management announced on the 25th that it has reduced the total expense ratio of the 'PLUS US S&P500 Growth Stocks' Exchange-Traded Fund (ETF) from the previous 0.04% to 0.0062%.

The fee reduction is a decision aimed at lowering the cost burden for investors who want to invest in representative growth stocks in the US. In particular, for ETFs related to indices representing the US market, such as the S&P500, many investors invest over a long period through pension accounts, so even a small difference can create a significant impact in the future due to the compound effect.

The PLUS US S&P500 Growth Stocks ETF is based on the S&P500 index, which is the most widely invested index in the US stock market, but uses the S&P500 Growth Stocks index as its underlying index, which places a higher weight on stocks with high growth potential. It is characterized by pursuing higher returns compared to the S&P500 by increasing the weight of high-growth sectors such as artificial intelligence (AI), semiconductors, cloud computing, autonomous driving, and humanoids. At the same time, it also has the advantage of the S&P500 in diversifying investments across various sectors such as healthcare, finance, and consumer goods.

The performance of the PLUS US S&P500 Growth Stocks ETF over different periods, as of the 20th, was 1.8% over the past month, 10.7% over three months, and 14.3% since listing. It outperformed the S&P500 Index (converted to Korean won) during the same period.

Since the PLUS US S&P500 Growth Stocks ETF has a higher expected capital gain compared to the S&P500 but a lower dividend yield (distribution rate), it is relatively unaffected by recent changes such as the abolition of the foreign withholding tax refund system. Recently, due to the abolition of the foreign withholding tax refund system, some funds have been flowing out of domestic listed ETFs that invest in overseas representative indices with high distribution rates.

Geum Jeong-seop, Head of the ETF Business Division at Hanwha Asset Management, said, "With this fee reduction, PLUS US S&P500 Growth Stocks now has industry-leading competitiveness in terms of investment costs." He added, "Choosing a low fee alone is not enough," explaining that "the fee difference among S&P500-related products is minimal, around 0.01% in terms of synthetic total expense ratio."

He emphasized, "Since the PLUS US S&P500 Growth Stocks ETF has consistently recorded excess returns compared to the S&P500, it will provide investors with long-term growth opportunities along with this fee reduction."

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