Kiwoom Asset Management Lists 'Samsung Electronics & SK hynix Bond Mixed 50' ETF

Kiwoom Asset Management announced on April 21 that it has newly listed the 'KIWOOM Samsung Electronics & SK hynix Bond Mixed 50 ETF' on the Korea Exchange.

According to Kiwoom Asset Management, this product invests a total of 50% in Samsung Electronics and SK hynix, allocating 25% to each, while the remaining 50% is invested in short-term bonds such as Treasury bonds and Monetary Stabilization Bonds with maturities of one year or less. The product is structured as a hybrid fund, and it is designed to maintain a 50:50 allocation between equities and bonds through daily rebalancing.

In addition, dividend income from the stocks of Samsung Electronics and SK hynix, as well as interest income from short-term Treasury bonds and Monetary Stabilization Bonds, are utilized to pay out distributions on the 15th of every month.

In particular, a performance-linked special distribution policy has been applied, in which, if the ETF's net asset value (NAV) exceeds a certain threshold, a portion of the returns is realized to provide additional distribution funds. The special distribution is based on capital gains from trading shares of Samsung Electronics and SK hynix. A representative from Kiwoom Asset Management explained, "The same tax regime as capital gains from stock sales is applied, so distributions can be received tax-free even in ordinary accounts, which is a notable advantage for investors."

This product, with its bond-mixed structure, can be included in retirement pension accounts (IRP, DC) up to 100%.

Kyungjun Lee, Head of ETF Management at Kiwoom Asset Management, stated, "This product focuses investments on Samsung Electronics and SK hynix, while also including bonds to reduce volatility. It strengthens cash flow by providing monthly distributions and considering additional special distributions. It can serve as a practical alternative for investors who wish to utilize the non-risk asset ratio within their retirement pension accounts while securing cash flow through monthly distributions."

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