Korea Investment Management announced on the 8th that it will newly list the 'ACE high-quality corporate bond (AA- or higher) active' exchange-traded fund (ETF) on the 9th.
The ETF will invest in corporate bonds with a credit rating of AA- or higher and mid-term other financial bonds.
The benchmark index is the 'KIS 1-3 year high-quality credit (AA- or higher) total return index' calculated and published by KIS Asset Management. This index is composed of ▲securities with an issued amount of more than 50 billion won ▲credit ratings of AA- or higher ▲and bonds with a remaining maturity of more than 1 year and up to 3 years.
This product is referred to as the ETF version of Korea Investment Management's representative bond fund, the Korea Investment Credit Focus ESG Fund. The Korea Investment Credit Focus ESG Fund is the largest among domestic bond public funds, with an operating asset amount of 4.4328 trillion won as of the 5th, according to FnGuide.
There are also differences from the Korea Investment Credit Focus ESG Fund. While the fund includes corporate bonds with a credit rating of A- or higher, the ACE high-quality corporate bond (AA- or higher) active ETF includes only securities with a rating of AA- or higher. KIM explains that this provides a better investment option for conservative investors who want to benefit from asset allocation effects with stocks and other assets.
Hong Da-jeong, the manager of the ETF, noted, 'Currently, there are many bond-type ETFs investing in ultra-short-term or ultra-long-term securities in the domestic ETF market,' adding that 'the ACE high-quality credit (AA- or higher) active ETF is differentiated in that it invests in high-quality corporate bonds in the mid-term range.'