Samsung Asset Management Lists KODEX TDF 2060 Active ETF

Samsung Asset Management is expanding its KODEX TDF (Target Date Fund) ETF series in the retirement pension market by introducing a new vintage (retirement target year), building on the strong performance of its existing offerings.

On July 22, Samsung Asset Management announced that, following its currently listed three TDF ETFs, it will newly list the longest-term vintage, the "KODEX TDF 2060 Active." A TDF is a fund where the investor's retirement target year is marked as the vintage, and the allocation between risky assets such as equities and safer assets such as bonds is automatically adjusted according to the investor's life cycle. The ETF listed on this day is designed for investors with the furthest retirement target year, allowing younger investors to pursue a more aggressive investment strategy.

The KODEX TDF Active ETF combines the advantages of TDFs, which are tailored for retirement pensions, with the benefits of ETFs, such as real-time trading, transparent asset disclosure, and low fees. Since its launch in June 2022, with vintages divided into 2030, 2040, and 2050, the KODEX TDF ETF has consistently attracted investment, and its total net assets have now surpassed 300 billion KRW.

The KODEX TDF 2060 Active ETF, like the existing KODEX TDF ETFs, applies the Glide Path jointly developed by Samsung Asset Management and S&P Global. The Glide Path refers to the shifting allocation between equities and bonds that adjusts over time until retirement. The KODEX TDF Active ETF uses an intuitive and simple fixed-rate adjustment Glide Path, making it easy and clear for investors to understand the ETF’s management strategy and performance.

The equity allocation in the Glide Path starts at 80% and decreases by 1.6 percentage points each year starting 30 years before the retirement target date, maintaining a minimum equity allocation of 20%. For example, KODEX TDF 2060 Active applies an 80.0% equity allocation as of 2025, maintains this level until 2030, and then gradually reduces it by 1.6% each year until the retirement target date.

Based on an analysis of the past 10 years of data, KODEX TDF 2060 Active has constructed an optimal asset allocation using an ETF portfolio that combines currency-unhedged global equities and domestic bonds, which has shown the best risk-adjusted returns. This has been demonstrated by the actual performance of KODEX TDF 2050 Active, which as of July 21, recorded a three-year return of 49.5%, ranking second in returns among 2050 TDF vintages, thereby proving its strong performance.

In addition, KODEX TDF 2060 Active has built an even more aggressive portfolio than previous vintages by allocating 50% to global equities and including the US S&P 500, which has demonstrated long-term growth, at a level of 30%.

The KODEX TDF ETF series meets the requirements of qualified TDFs, allowing for 100% investment within retirement pensions. As ETFs, these products offer real-time buying and selling, transparent real-time disclosure of asset holdings, and the advantage of low total fees.

Ma Seunghyun, a manager at Samsung Asset Management, stated, "As a follow-up vintage in the KODEX TDF Active ETF series, which can be fully utilized in retirement pensions, the launch of this more aggressive TDF ETF provides a new solution optimized for pension investments for the younger generation, who have a long time until retirement." He added, "Given that the previously listed KODEX TDF ETF series has already demonstrated relatively high returns and investment convenience, KODEX TDF 2060 Active will become a new option for smart pension investors."

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