Bae Jae-kyu, president of Korea Investment Trust Management, said, "While there may be volatility in the short term, the strategy of long-term investment in U.S. growth stocks remains valid," and noted, "As a result, we are introducing a new dividends-centric exchange-traded fund (ETF) focused on U.S. growth stocks" on the 13th.
On this day, Korea Investment Trust Management held a seminar for the new listing of the ACE U.S. Dividends Quality ETF series at the Conrad Seoul in Yeouido, Seoul. The event was attended by President Bae Jae-kyu, Deputy Minister Nam Yong-soo, and Chief Investment Officer (CIO) of global asset management firm WisdomTree, Jeremy Schwartz.
The ACE U.S. Dividends Quality series refers to the newly listed ▲ACE U.S. Dividends Quality ETF ▲ACE U.S. Dividends Quality Bond Mix 50 ETF ▲ACE U.S. Dividends Quality + Covered Call Active ETF. To launch this series, Korea Investment Trust Management previously signed a business agreement with WisdomTree and carried out index development.
President Bae emphasized, "Big tech corporations leading the digital age will continue to be at the center of daily life," and added, "A dividends strategy that combines growth and profitability is a better answer for investment than just high dividends."
On this day, Jeremy Siegel, a professor at the Wharton School, delivered his remarks via video. Professor Siegel is known for creating the theoretical basis of the WisdomTree U.S. Quality Dividend Growth ETF (DGRW), which underpins the ACE U.S. Dividends Quality series. He explained, "I have always been interested in the factors that cause stock price fluctuations and stocks that are good for long-term holding," and discussed the reason for designing a portfolio that includes corporations capable of continuous dividend expansion based on solid financial health and future growth potential.
As the first speaker, CIO Jeremy Schwartz noted, "Unlike the dot-com bubble of the 2000s, today's technology stocks are reasonably priced, reflecting growth rates," and said, "DGRW has the flexibility to reflect both dividends and overall business growth rather than just the dividend history of the past 10 years."
He added, "The strategy of DGRW, which reflects both the company's growth potential and dividends growth, is a way to secure not only higher total returns but also resilience in down markets."
Deputy Minister Nam Yong-soo, who was in charge of the second presentation, introduced the ACE U.S. Dividends Quality series. He explained the background for the product launch, stating, "Domestic monthly dividends investors have expressed disappointment as the compounding effect of U.S. high-dividend ETFs in tax-exempt accounts has decreased following the foreign tax credit reform, and we determined that there is a need for new products that match investor demands for high total returns from long-term investment and cash flow generation from monthly distributions."
During the Q&A session held that day, Deputy Minister Nam explained that long-term investing focused on the U.S. market is more advantageous than the Chinese market. He stated, "While we should not dismiss China's technological power, if you ask where I would invest for 30 years, I would personally invest in the U.S. because it is a competitive system influenced by national policies while being capitalist, making it better for long-term investment."