ACE U.S. Benchmark Index ETFs Surpass 4.5 Trillion Won in Combined Net Assets

Korea Investment Management announced on October 13 that the combined net asset value of its two ACE exchange-traded funds (ETFs) investing in the leading U.S. indices, the S&P 500 and Nasdaq 100, has surpassed 4.5 trillion won.

According to the Korea Exchange, the combined net asset value of the ACE U.S. S&P 500 ETF and the ACE U.S. Nasdaq 100 ETF reached 4.5781 trillion won as of the market close on the 10th. After first exceeding 4 trillion won in combined net assets on September 5, the total increased by 500 billion won in just 20 trading days. The net asset value of each ETF was recorded at 2.5202 trillion won for the ACE U.S. S&P 500 ETF and 2.0579 trillion won for the ACE U.S. Nasdaq 100 ETF. Compared to the end of last year, the figures represent growth of 51.60% and 59.06%, respectively, since the beginning of this year.

The ACE U.S. S&P 500 ETF, listed in August 2020, is based on the S&P 500 Index. Investing in this ETF allows for diversified investment across 500 large-cap blue-chip stocks listed on the U.S. stock market. The ACE U.S. Nasdaq 100 ETF, listed in October 2020, tracks the NASDAQ 100 Index and includes 100 leading technology stocks listed on U.S. exchanges.

The rapid growth of these two products is attributed to their strong long-term performance and heightened interest from individual investors. Over the past six months, the ACE U.S. S&P 500 ETF and the ACE U.S. Nasdaq 100 ETF recorded returns of 21.03% and 29.19%, respectively. For the one-year and three-year periods, the ACE U.S. S&P 500 ETF posted returns of 22.20% and 80.41%, while the ACE U.S. Nasdaq 100 ETF achieved 30.30% and 119.97%, respectively, continuing an upward trend.

The robust performance of the U.S. stock market has also fueled increased investment demand among domestic investors, further driving net asset growth. According to Korea Securities Depository's Safe+ platform, 49 out of the top 50 overseas stocks by net purchases from domestic individual investors since the beginning of the year were U.S.-listed stocks. Individual net buying of the two ETFs has also continued, with purchases totaling 335.2 billion won for the ACE U.S. S&P 500 ETF and 252.2 billion won for the ACE U.S. Nasdaq 100 ETF since the start of the year. The low total expense ratios of the products have played a significant role in attracting individual investors. The annual total expense ratios for the two ETFs are 0.0047% and 0.0062%, respectively, the lowest among domestically listed ETFs tracking the same indices.

Nam Yongsoo, Head of ETF Management at Korea Investment Management, stated, "The two ACE U.S. benchmark index ETFs are enjoying strong popularity among individual investors thanks to their excellent long-term performance and low fees. Surpassing 4.5 trillion won in net assets signifies that these products have established themselves as long-term investment vehicles for U.S. equities among domestic investors."

The two ACE ETFs are performance dividend-type products, and past performance does not guarantee future results. In addition, principal loss may occur depending on investment outcomes.

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