Korea Investment Management noted on the 11th that it will reduce the total fees for gold bullion and U.S. and domestic representative index exchange-traded funds (ETFs).
According to the financial investment industry on the 11th, Korea Investment Management will lower the total fees for five products, including the ACE U.S. S&P 500, ACE U.S. Nasdaq 100, ACE KRX gold bullion, ACE 200, and ACE 200 TR ETFs, starting from the 17th.
The ACE U.S. S&P 500 ETF, which tracks the U.S. representative index, the Standard and Poor’s (S&P) 500, will significantly lower its total fees from 0.07% to 0.0047%. This marks the lowest fee among ETFs of the same type. The total fees for the ACE U.S. Nasdaq 100 ETF will decrease from the current 0.07% to 0.0062%.
The fees for domestic index ETFs will also be reduced. The total fees for the ACE 200 ETF will drop from the current 0.09% to 0.017%, while the ACE 200 TR ETF will decrease from 0.03% to 0.01%.
Recently, the total fees for the ACE KRX gold bullion ETF, which has faced intense competition as major asset management firms like Samsung Asset Management and Mirae Asset Management launched similar products, will be lowered from 0.5% to 0.19%. This decision is interpreted as a response to Mirae Asset Management launching a similar product, the ‘TIGER KRX gold bullion’ ETF, with lower fees (0.15%).
Korea Investment Management did not participate in the fee reduction competition for U.S. representative index ETFs earlier this year against major asset managers like Samsung Asset Management and Mirae Asset Management, but it has been reported that it has ultimately decided to lower its total fees to prevent customer discrimination.
According to the Korea Securities Depository, the total net worth of Korea Investment Management’s ETFs was 16.59 trillion won as of the previous day, ranking fourth after Samsung Asset Management, Mirae Asset Management, and KB Asset Management. Korea Investment Management had maintained the third position in the domestic ETF industry for a long time but was recently surpassed by KB Asset Management.