Hantoo Asset ACE US 30-Year Treasury Active Surpasses 2 Trillion KRW in Net Assets

Korea Investment Trust Management announced on the 27th that the net asset value of the ACE US 30-Year Treasury Active (H) Exchange-Traded Fund (ETF) has surpassed 2 trillion KRW. It is the largest ETF investing in long-term US government bonds listed domestically. It is the first ACE ETF product to exceed 2 trillion KRW.

According to the Korea Exchange, the net asset value of the ACE US 30-Year Treasury Active (H) ETF was recorded at 2.0324 trillion KRW. Since its listing in March 2023, the ACE US 30-Year Treasury Active (H) ETF surpassed 1 trillion KRW in net assets in about one year. In another year, its net asset size doubled. This year alone, net assets increased by 239.5 billion KRW.

The ACE US 30-Year Treasury Active (H) ETF is the first and largest physical US long-term treasury bond investment ETF in Korea. Its benchmark index is the ‘Bloomberg US Treasury 20+ Year Total Return Index,’ which includes US 30-year treasury bonds with a remaining maturity of 20 years or more. Due to the characteristics of long-term bonds, bond prices rise when the base interest rate is lowered, allowing investors to expect capital gains.

Over the past year, the net purchase amount by individuals of the ACE US 30-Year Treasury Active (H) ETF was 373 billion KRW. Among 78 domestic listed government bond ETFs, the ACE US 30-Year Treasury Active (H) ETF ranked first in average trading value and average trading volume over the recent 3, 6, 9 months, and 1 year. This demonstrates the strong market interest over the past year.

Another advantage is the steady monthly dividend payments. Since its listing, the ACE US 30-Year Treasury Active (H) ETF has paid monthly dividends consecutively 22 times up to the recent January, allowing investors to expect stable cash flow generation.

Nam Yong-su, Head of ETF Management at Korea Investment Trust Management, said, "Since the inauguration of US President Donald Trump, expectations for interest rate cuts have increased," and added, "As investor interest in US long-term treasury bond investments rises, the first ACE ETF product to surpass 2 trillion KRW in net assets has been created."

As a performance dividend-type product, principal loss may occur depending on management results.

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