Korea Investment Management's 'ACE Money Market Active' ETF Draws Over 200 Billion Won Since Start of Year

Net Asset Value Growth Rate Surpasses Average of Money Market ETFs

Korea Investment Management announced on April 23 that more than 200 billion won has flowed into the 'ACE Money Market Active' Exchange Traded Fund (ETF) since the beginning of the year.

According to ETFCheck, as of the previous day, the amount of funds that have flowed into the ACE Money Market Active ETF since the start of the year totaled 214.2 billion won. This figure far exceeds the average inflow of 35 billion won among the 14 money market ETFs listed in Korea.

The growth rate of the fund's net asset value is also among the highest. The net asset value of the ACE Money Market Active ETF stands at 685.5 billion won, marking a 47.39% increase compared to the end of last year. During the same period, the average net asset value growth rate for the 14 money market active ETFs was 9.93%.

The ACE Money Market Active ETF is a parking-type product that was listed in July 2024. Parking-type ETFs accumulate interest calculated on a daily basis from ultra-short-term bonds, such as negotiable certificates of deposit (CDs) or the Korea Overnight Financing Rate (KOFR). They are mostly used to manage short-term funds or idle funds within pension accounts. This product primarily invests in bonds with a remaining maturity of less than three months and a credit rating of AA or higher, as well as commercial papers and CDs, including short-term bonds.

Jo Ikhwan, Head of FI Management Division 1 and responsible fund manager, said, "The ACE Money Market Active ETF is managed with a duration of about 0.2 years, which means it is less sensitive to interest rate fluctuations. Another investment point is that while the CD interest rate (91-day, as of the 22nd) is 2.82%, the ETF’s annualized maturity yield (as of the 22nd) is higher at 3.31%."

Jo added, "A parking-type ETF allows investors to earn interest even with just a one-day investment, and since there is no mandatory holding period, liquidity can be secured whenever needed. Its high utility for managing idle funds makes it especially suitable for use in pension and Individual Savings Accounts (ISA), where 100% investment is possible. Therefore, it is a good choice for portfolio investment."

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