1Q US Nasdaq 100 ETF Surpasses 50 Billion Won in Net Assets

Hana Asset Management announced on November 7 that the net assets of the '1Q US Nasdaq 100 ETF' have surpassed 50 billion won.

The Nasdaq 100 ETF is a product that invests in the Nasdaq 100 Index, which is composed of 100 leading technology companies representing the US tech industry, including Apple, Google, Nvidia, Tesla, and Palantir. It is recognized as a flagship US index ETF that is highly utilized by individual and pension investors.

Since the listing of the 1Q US Nasdaq 100 ETF, individual investors have made net purchases totaling 23.1 billion won. Net purchases have also continued from a variety of investor groups, including banks, insurance companies, and institutional investors (other corporations).

The 1Q US Nasdaq 100 ETF has a total expense ratio of 0.0055% per year, which is the lowest among Nasdaq 100 ETFs listed on major financial markets such as the Korea Exchange, the US, Japan, Australia, and Hong Kong. Compared to the total expense ratio (0.2000% per year) of the Invesco QQQ Trust ETF, which is the largest Nasdaq 100 tracking ETF globally in terms of net assets, this cost is less than one-third, making it especially suitable for long-term investments such as pensions.

It is also characterized by a differentiated distribution schedule and the lowest price per share among Nasdaq 100 ETFs listed in Korea.

This year, Hana Asset Management completed a four-product series of flagship US index ETFs for pension investors by listing the following: 1Q US S&P 500, 1Q US S&P 500 US Treasury Mixed 50 Active, 1Q US Nasdaq 100, and 1Q US Nasdaq 100 US Treasury Mixed 50 Active.

Kim Taewoo, CEO of Hana Asset Management, stated, "The low-cost strategy for flagship indices in the ETF market is a trend in the global ETF industry," adding, "In the US, the QQQM ETF (Invesco NASDAQ 100), which was listed in 2020, saw its net assets grow rapidly due to its lower expense ratio, despite being listed later than the largest QQQ ETF (Invesco QQQ Trust), which was listed in 1999."

He continued, "Famous investment scholars such as John Bogle, the father of index funds and founder of Vanguard Group, as well as Warren Buffett, John Templeton, and Howard Marks, have consistently emphasized the importance of low-cost investing for long-term investment."

Kim further commented, "The effect of low fees directly leads to higher investment returns for investors, so in the case of flagship index products like the Nasdaq 100 ETF, minimizing total expenses is ultimately directly linked to long-term returns for investors."