Kiwoom Asset Management announced on the 6th that it will launch the "KIWOOM PALANTIR U.S. 30-Year Treasury Mixed Active (H)" and "KIWOOM NVIDIA U.S. 30-Year Treasury Mixed Active (H)" exchange-traded funds (ETFs). The scheduled listing date is the 11th.
The two products are single-stock bond-mixed ETFs that invest in either Palantir or NVIDIA and U.S. 30-year Government Bonds. This is the first domestic ETF to simultaneously invest in U.S. stocks and U.S. 30-year long-term Government Bonds.
These ETFs will reflect the prices of Palantir or NVIDIA stocks and U.S. 30-year Government Bonds with a ratio of 3 to 7, using the "Bloomberg Blended PALANTIR/NVIDIA and U.S. Long Treasury Bond Index" as a comparative index. This index is expected to yield similar effects to investing 30% in Palantir or NVIDIA, which are leading the artificial intelligence (AI) industry, and 70% in U.S. ultra-long Government Bonds that yield high revenue compared to short-term bonds during a phase of interest rate cuts. As active ETFs, they aim to maintain a correlation coefficient of over 0.7 with the comparative index while seeking higher performance compared to the comparative index.
Palantir is regarded as a leader in the artificial intelligence (AI) software sector. NVIDIA has established itself as a leading player in AI semiconductors.
Kiwoom Asset Management explained that the utility of the KIWOOM PALANTIR U.S. 30-Year Treasury Mixed Active (H) and KIWOOM NVIDIA U.S. 30-Year Treasury Mixed Active (H) is significant for investors who actively seek to increase asset growth by raising the proportion of stocks in their retirement pension accounts.
Under current regulations, the proportion of high-risk assets (equity or equity-mixed) that can be invested in retirement pension accounts is limited to a maximum of 70%. This means that at least 30% of the accumulated funds must be invested in low-risk assets (bond or bond-mixed). By using these two ETFs, it is possible to increase the effective stock investment proportion of retirement pensions by holding a high weight of stocks within this 30% limit. It is also possible to invest 100% of retirement pension accumulations in these ETFs.
A representative from Kiwoom Asset Management said, "This new product, which combines U.S. 30-year Government Bonds with Palantir or NVIDIA, provides an optimal alternative for retirement pension investors seeking aggressive asset growth, as it allows for focused investment in high-growth individual stocks while also pursuing the benefits of interest rate cuts."