Korea Investment Trust Management made an announcement on the 15th regarding the ACE US S&P 500 Exchange Traded Fund (ETF), revealing that its net assets had surpassed 2 trillion won. This milestone marks the second ACE ETF to reach this impressive figure, exceeding the average net purchase of other S&P 500 ETFs listed in Korea. The ETF, which tracks the S&P 500 index, has garnered significant interest from individual investors, with a net purchase amounting to 263.6 billion won this year.
The success of the ACE US S&P 500 ETF can be attributed to its low actual cost ratio compared to similar products, making it an attractive option for investors. This ETF, introduced by Korea Investment Trust Management in August 2020, has demonstrated strong performance, outpacing the S&P 500 index in terms of returns. Notably, the ACE ETF’s actual cost ratio of 0.18% is lower than the industry average, enhancing its appeal to investors seeking cost-effective investment opportunities.
Foreign exchange exposure adds another dimension to the attractiveness of the ACE US S&P 500 ETF, allowing investors to benefit from currency fluctuations. In the past year, the ETF recorded a return of 16.60%, outperforming the S&P 500 index. Over the last three years, the ETF has continued to deliver impressive returns, showcasing its potential as a long-term investment option for individuals, including those considering pension accounts.
Na Yong-soo, the head of the ETF management division at Korea Investment Trust Management, emphasized the strong management and low cost ratio of the ACE US S&P 500 ETF, highlighting its portfolio composition based on blue-chip stocks in the United States. The ETF’s regular quarterly rebalancing ensures that the portfolio remains aligned with market dynamics, offering investors easy access to the US stock market.
The Korea Exchange’s data underscores the growing popularity of the ACE US S&P 500 ETF among retail investors, with its net assets reaching 2 trillion won on the 13th. The ETF’s consistent performance and cost-effectiveness have positioned it as a preferred choice for those looking to diversify their investment portfolios with exposure to the US market. As financial markets continue to evolve, investment products like the ACE US S&P 500 ETF play a crucial role in providing investors with opportunities for growth and wealth accumulation.
In a time of economic uncertainty and market volatility, the success of the ACE US S&P 500 ETF serves as a testament to the appeal of well-managed, cost-effective investment vehicles. As individuals seek to navigate the complexities of the financial landscape, ETFs like the ACE US S&P 500 offer a reliable and accessible way to participate in global markets and potentially benefit from diverse investment strategies. Korea Investment Trust Management’s commitment to delivering value to investors through innovative products underscores the importance of staying ahead in the ever-changing investment landscape.
