Samsung Asset Management Launches New Nasdaq-100 and US Treasury ETF

Samsung Asset Management announced the launch of a new exchange-traded fund (ETF) that divides its investments evenly between the Nasdaq-100 index and short-term United States Treasury bonds. The fund, named 'KODEX US Nasdaq 100 US Treasury Mixed 50,' became available to investors on November 10.

The fund allocates half of its assets to short-term U.S. government bonds with maturities ranging from one to three months. The other half is invested in major technology companies included in the Nasdaq-100 index, such as Apple, Microsoft, and NVIDIA.

Fund managers designed the portfolio to include short-duration bonds to reduce price volatility caused by interest rate fluctuations while securing dollar-denominated interest income. To maintain balance, the ETF utilizes a daily rebalancing strategy that keeps the asset allocation at a 50-50 split, holding the target within a one percent margin.

The product distributes dividends on the 15th of every month, funded by stock dividends and interest earned from the short-term U.S. Treasuries. The ETF operates as a currency-exposed product where fluctuations in the dollar-won exchange rate are reflected in the investment performance, and it carries an annual total expense ratio of 0.25 percent.

Because the fund keeps its stock allocation below 50 percent, it is classified as a bond-mixed ETF. This classification exempts it from the 70 percent risk asset investment limit in retirement accounts, allowing investors to allocate up to 100 percent of their defined contribution and personal retirement pension accounts into the product.

Kim Jung-hyun, a manager at Samsung Asset Management, stated that the product combines the stability of short-term U.S. Treasuries with the growth potential of the Nasdaq-100 and the appeal of monthly payouts. He noted that it serves as a useful alternative for investors seeking to steadily expand their technology exposure within retirement accounts during the year-end pension contribution season.

Global stock markets have experienced heightened volatility driven by discussions surrounding artificial intelligence valuations. Meanwhile, Samsung Asset Management hosted a live web seminar on its official YouTube channel to introduce the core strategies of the newly launched investment product to the public.