Korea Investment Management's ACE ETFs Surpass 30 Trillion Won in Total Net Assets, Led by Technology Stocks

Korea Investment Management announced on March 4 that the total net asset value (NAV) of its ACE Exchange-Traded Funds (ETFs) has surpassed 30 trillion won.

According to the Korea Exchange, as of February 27, the combined NAV of 105 ACE ETFs managed by Korea Investment Management reached 30.0486 trillion won. This marks a growth of over 50% in just five months, following the milestone of 20 trillion won in NAV with 100 ETFs at the end of September last year.

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The growth of ACE ETFs has been led by technology stock ETFs. Over the past five months since surpassing the 20 trillion won milestone, the NAV of the overseas technology stock product, ACE Google Value Chain Active ETF, and the domestic technology stock product, ACE AI Semiconductor Focus ETF, increased by 604.34% and 638.58%, respectively.

Developing technology stock ETFs reflecting the investment philosophy of Korea Investment Management into major products has also been a significant growth driver. During this period, ACE Global Semiconductor TOP4 Plus ETF and ACE US Big Tech TOP7 Plus ETF each exceeded 1 trillion won in NAV, contributing to overall growth. Notably, ACE Global Semiconductor TOP4 Plus ETF has delivered a cumulative return of 529.46% since its listing, the highest among all semiconductor ETFs listed in Korea. The product’s 1-year and 3-year returns are 140.63% and 435.09%, respectively.

Amid a bullish domestic stock market, both ACE KOSDAQ150 ETF and ACE 200 ETF also showed remarkable growth. Among KOSDAQ150 ETFs listed in Korea, ACE KOSDAQ150 ETF recorded the lowest levels in annual total expense ratio, synthetic expense ratio, and actual cost during this period, and its NAV grew by 959.93%. After reducing its annual total expense ratio to 0.017% in September last year-the second lowest among KOSPI200 ETFs-ACE 200 ETF also saw its NAV increase by 150.57%, surpassing 1 trillion won.

There has also been a steady inflow of demand for safe asset ETFs amid market volatility. The NAV of ACE US 10-Year Treasury Active (H) ETF and ACE US 10-Year Treasury Active ETF, both investing in US 10-year Treasury bonds, rose by 466.93% and 237.70%, respectively. The ACE KRX Gold Spot ETF, which recorded nearly 250 billion won in net individual purchases in January alone, also posted a 146.66% growth rate over the past five months, with its NAV surpassing 5 trillion won.

Yongsoo Nam, Head of ETF Management at Korea Investment Management, stated, "ACE ETFs have continued to expand a technology stock-focused lineup based on the investment philosophy that long-term investments should target areas with future growth potential." He added, "Given that artificial intelligence (AI) remains a megatrend, we will continue to launch domestic and overseas products centered on AI, as well as products in derivative sectors."

He continued, "Pension investment is also an integral market trend," noting, "We plan to introduce a variety of products such as ACE High Dividend ETF and ACE REITs Real Estate Infrastructure Active ETF for investors seeking stable cash flow."

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