KB Asset Management said on the 20th that the combined net worth of its three "RISE TDF2030·2040·2050 Active Qualified ETFs" has surpassed 400 billion won.
Since 2022, KB Asset Management has successively launched products that apply a target date fund (TDF) strategy—which automatically adjusts asset allocation based on the expected retirement date—to exchange-traded funds (ETFs). The three products diversify across ETFs linked to domestic and overseas stocks, bonds, and alternative assets, and apply a total fee of 0.01% per year.
A TDF raises the share of risk assets such as stocks when there is a long period left until retirement, and increases the share of safe assets such as bonds as the retirement date approaches, using a "glide path" strategy. The risk asset allocation of the RISE TDF ETFs ranges from 55% to 78%, depending on the product. Investors can choose the 2030, 2040, or 2050 product based on their expected retirement date and risk tolerance.
Unlike typical public-offering TDFs, another feature is that they can be bought and sold in real time during trading hours on the exchange. While public-offering TDFs are subscribed and redeemed based on net asset value, TDF ETFs can be traded in real time at desired prices like domestic stocks.
Performance has also been solid. According to FnGuide, as of the 19th, the 1-year return of "RISE TDF2050 Active Qualified" was 25.36%, and the 3-year return was 67.92%.
They can also be used in retirement pension accounts. RISE TDF ETFs can be included up to 100% of investment funds in defined contribution (DC) retirement pensions and individual retirement pension (IRP) accounts.
Yuk Dong-hui, head of ETF Product Marketing at KB Asset Management, said, "RISE TDF ETFs combine the advantages of ETFs—low fees and real-time trading—with TDFs' automatic asset allocation. Because asset allocation is automatically adjusted to the retirement date without investors having to directly adjust stock and bond weights according to market conditions, pension investing can be done more easily."