KIWOOM US Large Cap 500 Monthly Target Hedge Active ETF Newly Listed

Kiwoom Asset Management announced on October 20 that the "KIWOOM US Large Cap 500 Monthly Target Hedge Active ETF" will be newly listed on the Korea Exchange on October 21.

This ETF invests in 500 representative US large-cap stocks and US short-term bonds, setting a "monthly target defense line" to replicate a protective put strategy without using options. It manages downside risk on a monthly basis to limit losses while pursuing returns. As a monthly dividend ETF, it distributes dividends at the end of each month, utilizing both the dividends from the 500 US large-cap stocks and interest income from US short-term bonds.

The KIWOOM US Large Cap 500 Monthly Target Hedge Active ETF monitors the market daily throughout the month and automatically adjusts the allocation between stocks and bonds to minimize the probability of returns falling below the monthly target defense line. During market uptrends, it increases the proportion of stocks to actively participate in the growth of US large-cap companies, while in downturns, it raises the bond allocation to enhance defensiveness. The stock allocation dynamically shifts between a minimum of 5% and a maximum of 95%, depending on market conditions. The ETF aims to manage downside risk and reduce volatility, providing investors with peace of mind.

Instead of directly purchasing options, the ETF uses a "delta hedge" technique to replicate the effect of a put option, maintaining downside protection while reducing the cost burden associated with options.

The "KIWOOM US Tech 100 Monthly Target Hedge Active ETF," which applies the same strategic structure, has recorded a return of 6.10% since its launch in July, continuing to deliver stable performance.

Lee Kyungjun, Head of ETF Management at Kiwoom Asset Management, introduced the product by stating, "The KIWOOM US Large Cap 500 Monthly Target Hedge Active ETF is designed to allow investors to confidently hold for the long term, based on the long-term growth potential of the US large-cap market, even in a highly volatile global financial environment."

He added, "This is a way to pursue stable investment even in markets where uncertainty is expected," and explained, "As a product with a medium risk and medium return profile, it is suitable for stability-oriented investors."

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