Korea Investment Management (KIM) said on the 23rd that since the start of the year, inflows into the ACE Money Market Active exchange-traded fund (ETF) have topped 200 billion won.
According to ETF CHECK, as of the previous day, year-to-date inflows into the ACE Money Market Active ETF totaled 214.2 billion won. The inflows recorded by the ACE Money Market Active ETF exceed the average of 35 billion won for the 14 money market ETFs listed in Korea.
Along with the inflows, net asset growth also ranked among the highest. The ACE Money Market Active ETF's net asset value stands at 685.5 billion won, up 47.39% from the end of last year. Over the same period, the average net asset change rate recorded by the 14 money market active ETFs is 9.93%.
The ACE Money Market Active ETF is a parking-type product that Korea Investment Management listed in Jul. 2024. Parking-type ETFs accumulate interest calculated on a daily basis from ultra-short-term bonds such as certificates of deposit (CDs) or the Korea Overnight Financing Repo rate (KOFR). They are highly useful for operating short-term funds or idle funds within pension accounts. The ACE Money Market Active ETF also mainly invests in bonds with a remaining maturity of three months or less and a credit rating of AA or higher, corporate commercial paper including short-term bonds, and CDs.
Cho Ik-hwan, Director General of KIM's FI Management Department 1, said, "A key feature of the ACE Money Market Active ETF is that it is managed with a duration of about 0.2 years, making it less sensitive to interest rate fluctuations," adding, "While the current CD rate (91-day, as of the 22nd) is 2.82%, the ETF's annualized yield to maturity is higher at 3.31%, which is an investment point."
Cho added, "A parking-type ETF, which can earn interest income even with just one day of investment and has no mandatory subscription period, allowing investors to secure liquidity when needed, is highly useful for operating idle funds," noting, "As it is a product that allows 100% investment even in pension and individual savings accounts (ISA), it would be good to use it for portfolio investing."
The ACE Money Market Active ETF is a performance-based distribution product, and principal loss may occur depending on management results.