Kiwoom Asset Management announced on the 6th the listing of 'KIWOOM US Space Tech TOP2 Bond Hybrid 50 ETF' on the 7th on the Korea Exchange. The ETF allocates 25% each to SpaceX and Rocket Lab, with the remaining 50% invested in Korean short-term government and monetary stabilization bonds. The bond-hybrid structure enables 100% inclusion in retirement pension accounts, allowing investors who have reached the 70% risky asset limit to effectively expand their equity exposure to 85% by allocating the remaining 30% to this ETF.
ETF Allocates 25% Each to SpaceX and Rocket Lab
The product invests 25% in SpaceX and 25% in Rocket Lab, both representing the US space industry. SpaceX expands satellite communication business based on reusable launch vehicles and Starlink. Rocket Lab announced the acquisition of satellite communications company Iridium, expanding its business scope beyond launch vehicles to satellite services.
Bond Component Reduces Volatility Through Short-Term Government Securities
The ETF invests 50% of total assets in Korean short-term government bonds and monetary stabilization bonds. The fund includes short-term bonds with remaining maturities of 3 months to 1 year to reduce price volatility from interest rate fluctuations. The fund rebalances daily to maintain a 50-50 ratio between stocks and bonds.
Monthly Distributions Paid on Last Business Day
The product pays distributions monthly. Distributions are paid on the last business day of each month.
Retirement Pension Accounts Permit 100% Allocation
Bond-hybrid ETFs can be 100% included in retirement pension accounts. Investors who have filled the 70% risky asset limit can allocate the remaining 30% to this ETF, expanding their effective equity investment ratio to a maximum of 85%.
Lee Kyung-joon, head of ETF operations at Kiwoom Asset Management, stated that the space industry is rapidly expanding into various fields including satellite communications and data infrastructure centered on launch vehicles. He described the ETF as a product designed to concentrate investment in leading companies in the space industry while incorporating bonds for use in retirement pensions.
FAQ
What is the asset allocation of the KIWOOM US Space Tech TOP2 Bond Hybrid 50 ETF?
The ETF allocates 25% to SpaceX, 25% to Rocket Lab, and 50% to Korean short-term government and monetary stabilization bonds with remaining maturities of 3 months to 1 year. The fund rebalances daily to maintain a 50-50 ratio between stocks and bonds.
How does the ETF benefit retirement pension account holders?
Bond-hybrid ETFs can be 100% included in retirement pension accounts. Investors who have reached the 70% risky asset limit can allocate the remaining 30% to this ETF, effectively expanding their equity investment ratio to a maximum of 85%.
When does the ETF pay distributions?
The product pays distributions monthly on the last business day of each month.
