"Which ETFs Are Suitable for RIA Investment?"... Korea Investment Management Publishes Guidebook

Recommended Products Including ACE AI Semiconductor TOP3+
Guidebook Available for Download on the ACE ETF Website

Korea Investment Management recently published the 'Domestic Market Return Account (RIA) Investment Product Guidebook' and, on May 12, recommended five domestic equity-type exchange-traded funds (ETFs) as suitable investments for RIAs.

RIA is a special account temporarily introduced by the government this year to revitalize the Korean capital market. It offers tax benefits when proceeds from selling overseas stocks are reinvested in domestic stocks. If an investor sells overseas stocks through an RIA and reinvests the proceeds in domestic stocks or domestic equity-type ETFs for one year, they can receive a 50% to 100% reduction in capital gains tax.

With the 100% capital gains tax exemption available until May 31, Korea Investment Management recommended ACE ETF domestic equity-type products as good options for investment through RIAs. The five products are: ▲ACE 200 ▲ACE KOSDAQ150 ▲ACE AI Semiconductor TOP3+ ▲ACE Nuclear Power TOP10 ▲ACE K-Humanoid Robot Industry TOP2+. The guidebook is available for download on the ACE ETF website.

The ACE 200 ETF enables investment in the KOSPI 200, a representative index of the Korean stock market, with a low total expense ratio of 0.017% per year. Including other fees, the annual synthetic total expense ratio is also 0.04%, the lowest among ETFs tracking the KOSPI 200 listed in Korea. Another recommended representative index product, the ACE KOSDAQ150 ETF, invests in the KOSDAQ 150 index. By utilizing this product, investors can diversify into high-growth sectors such as artificial intelligence (AI), biotechnology, energy, and robotics. The ACE KOSDAQ150 ETF also offers the lowest annual total expense ratio of 0.02% among KOSDAQ150 ETFs. Including other fees, the synthetic total expense ratio is 0.06% per year.

Among the three thematic ETFs, the ACE AI Semiconductor TOP3+ ETF invests approximately 25% each in SK hynix, Samsung Electronics, and Hanmi Semiconductor, all of which have global competitiveness in the high-bandwidth memory (HBM) sector. The ACE Nuclear Power TOP10 ETF invests in 10 core domestic nuclear power stocks with global competitiveness, while the ACE K-Humanoid Robot Industry TOP2+ ETF focuses on four leading domestic humanoid industry companies—Hyundai Motor, Robotis, SPG, and Rainbow Robotics—which are expected to play a major role in the era of physical AI.

Nam Yongsoo, Head of ETF Division at Korea Investment Management, stated, "By leveraging RIAs, which offer tax reduction benefits, investors can achieve investment returns at lower tax rates." He added, "It would be beneficial to invest in ACE ETFs through RIAs, as they have been carefully selected to include not only representative index products but also high-growth domestic sectors such as AI semiconductors, nuclear power, and humanoids."

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