Korea Investment Trust Management is launching a bond-mixed exchange-traded fund (ETF) that splits its assets evenly between leading semiconductor stocks such as Samsung Electronics (005930.KS) and SK hynix (000660.KS) and short-term investment-grade bonds. The strategy adds Samsung Electro-Mechanics to the two chip heavyweights and pays a monthly dividend.
Korea Investment Trust Management said on the 24th that it will newly list the ACE Samsung Electronics SK hynix Plus Bond Mixed 50 ETF on the main stock market on the 25th. The product tracks the KAP Samsung Electronics SK hynix Plus Bond Mixed 50 Index as its base index, allocating half of its assets each to domestic stocks and bonds. The equity portfolio is built around Samsung Electronics (20%) and SK hynix (20%) as its core, adding one more stock from among the top 10 by market capitalization with strong ties to artificial intelligence (AI) chips. As of the listing date, it includes Samsung Electro-Mechanics (10%).
The 50% allocated to bonds focuses on short-term instruments such as treasury bonds with remaining maturities of one month to two years and monetary stabilization bonds of one to two years, cushioning volatility. Because the equity portion is capped at 50%, the fund can be purchased up to a 100% limit even in defined-contribution (DC) retirement pension and individual retirement pension (IRP) accounts, which restrict how much can be invested in risky assets. Distributions are paid on a monthly basis, at the start of the following month. Nam Yong-soo, head of the ETF division at Korea Investment Trust Management, said the fund "will be a useful investment tool for pension investors who want to enjoy the long-term growth of Korea's AI chips while cushioning downside volatility by including bonds."
