Hana Asset Management announced that on the 10th it will newly list the ‘1Q U.S. S&P 500 U.S. Treasury Bond Mixed 50 Active’, which invests up to 50% in the Standard and Poor's (S&P) 500 index among the first mixed bond exchange-traded funds (ETFs) in the country.
The ETF being launched invests equally 50% in the U.S. representative index S&P 500 and U.S. short-term treasury bonds, making it the one with the highest S&P 500 weighting among the mixed bond ETFs listed in Korea.
According to Hana Management, the 1Q U.S. S&P 500 U.S. Treasury Bond Mixed 50 Active is suitable for a strategy that actively expands the S&P 500 weighting in retirement pension accounts. By incorporating ‘1Q U.S. S&P 500’ within 70% of high-risk assets in the Defined Contribution (DC) and Individual Retirement Pension (IRP) accounts, and ‘1Q U.S. S&P 500 U.S. Treasury Bond Mixed 50 Active’ within 30% of low-risk assets (safe assets), it can achieve an effect of investing up to 85% in S&P 500 in the overall portfolio.
The ETF was able to be listed following the amendment of retirement pension supervisory regulations in November 2023. The revision allowed for the 100% incorporation of mixed bond ETFs with a stock weighting of less than 50% into retirement pension accounts.
A representative from Hana Management said, “The newly listed 1Q U.S. S&P 500 U.S. Treasury Bond Mixed 50 Active has a stock inclusion limit of 50%, making the S&P 500 weighting about 1.67 times higher than other management companies’ S&P 500 mixed bond ETFs listed in 2022.”
Hana Management has been expanding its ETF product lineup this year by consecutively listing ▲1Q U.S. Dividend 30 ▲1Q Comprehensive Bond (AA or higher) Active ▲1Q U.S. S&P 500 ▲1Q Medium and Short-Term Corporate Bonds (A or higher) Active.
Kim Tae-woo, CEO of Hana Management, said, “For investors with confidence in the U.S. market, incorporating 70% in the 1Q U.S. S&P 500 ETF and 30% in the 1Q U.S. S&P 500 U.S. Treasury Bond Mixed 50 Active ETF in retirement pension accounts allows for an investment of 85% in S&P 500 and 15% in U.S. Treasury bonds, which is the significant meaning of this ETF listing.”