"Targeting Both Gaming Industry Investments and High-Dividend Markets"... KB Asset Management Launches Two RISE ETFs

On October 21, KB Asset Management announced the launch of two new exchange-traded funds (ETFs), the 'RISE Global Game Tech TOP3Plus' and the 'RISE US High Dividend Dow Jones TOP10', thereby expanding its ETF lineup.

The RISE Global Game Tech TOP3Plus ETF is the first ETF in Korea to invest in the global gaming industry. This product focuses on the growth potential of the gaming industry, which is expanding through the convergence of artificial intelligence (AI) and big tech, and targets the entire gaming sector, including hardware, software, intellectual property (IP), and platforms.

It selects Sony, known for PlayStation, Nintendo, which is in the spotlight for the upcoming Nintendo Switch 2, and Microsoft, the company behind Xbox, as its core holdings, allocating 20% to each. In addition, it includes global game and tech companies such as AMD, Electronic Arts, Roblox, Tencent, Nvidia, and NetEase, using an equal-weighted approach.

Notably, to directly reflect the benefits of globally popular IPs, the ETF has included Take-Two Interactive, the parent company of Rockstar Games, which has drawn attention with the announcement of GTA6.

The RISE Global Game Tech TOP3Plus ETF portfolio consists of a total of 10 stocks and is regularly rebalanced on a quarterly basis to flexibly respond to market changes.

The RISE US High Dividend Dow Jones TOP10 ETF, which was listed simultaneously, is a high-dividend ETF that invests equally in the 10 companies within the US Dow Jones Index expected to have the highest dividend yields over the next year.

Based on the traditional 'Dogs of Dow' strategy, which invests equally in the top 10 high-dividend stocks within the Dow Jones Index, this ETF selects stocks using the forward dividend yield, which reflects future dividend potential.

It invests in leading global dividend stocks such as Cisco, Chevron, Johnson & Johnson, Home Depot, and Merck. The average dividend yield over the past five years has been 4.14%, which is more than 0.5 percentage points higher than that of the US Dividend Dow Jones 100 Index.

The portfolio is composed mainly of large, well-established dividend stocks, resulting in low volatility, and its monthly distribution structure enables stable cash flow. Rebalancing is conducted once a year.

No Areum, Head of ETF Business Division at KB Asset Management, explained, "We have strengthened our product lineup so that investors can enjoy both the growth potential of global emerging industries such as AI, semiconductors, and gaming, and the stable cash flow of high-dividend stocks."

She added, "We will ensure that investors with diverse investment goals and preferences can flexibly respond to changes in the market environment and achieve long-term asset performance through the 'RISE ETF' series."

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