ACE Global Income TOP10 SOLACTIVE, Net Asset Value Surpasses 60 Billion KRW

Korea Investment Trust Management announced on the 28th that the net asset value of the ACE Global Income TOP10 SOLACTIVE Exchange-Traded Fund (ETF) has surpassed 60 billion KRW.

The ACE Global Income TOP10 SOLACTIVE ETF is an asset allocation monthly distribution product that was listed in July 2023. Its underlying index is the 'Solactive Global Superior Income TOP 10 Price Return Index.' This index consists of 10 U.S.-listed ETFs with high distribution rates and consistent dividend payments.

According to the Korea Exchange, the ETF's net asset value was 62 billion KRW as of the 27th. It increased by approximately 20 billion KRW from 42.2 billion KRW at the end of last year. Amid increased market volatility, funds flowed into the asset allocation ACE Global Income TOP10 SOLACTIVE ETF as a diversification strategy.

Due to its asset allocation characteristics, the ACE Global Income TOP10 SOLACTIVE ETF tends to experience relatively less downward pressure during periods of intensified market volatility. While the U.S. S&P 500 and Nasdaq 100 indices fell by 4.65% and 7.80% respectively this year, this ETF only declined by 1.47%. Its returns over the past 1 year and 6 months were recorded at 7.05% and 5.76%, respectively.

Stable monthly distributions are also an advantage. Since the ETF’s distributions come from stock dividends and bond interest, the invested principal does not need to be used for distributions. The annualized distribution yield is 7.46%, and the total return combining distribution income and price appreciation reached 14.96% over one year.

Nam Yong-su, Head of ETF Management at Korea Investment Trust Management, explained, "The ACE Global Income TOP10 SOLACTIVE ETF is a product composed of ETFs that pay high and consistent dividends," adding, "The monthly distributions can be reinvested or used for consumption, making it suitable for middle-aged investors approaching retirement as well as young adults starting their careers."

He continued, "Due to its mixed asset allocation of stocks and bonds, the investment appeal stands out when the market shows high volatility," and added, "Investing through retirement pension accounts or Individual Savings Accounts (ISA) allows investors to benefit from tax deferral, compounding effects, and tax savings."

The ACE Global Income TOP10 SOLACTIVE ETF is a performance-distributing product, and past performance does not guarantee future results. Additionally, principal loss may occur depending on management outcomes.

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