Hana Asset Management will launch the '1Q NVIDIA Alphabet Bond Hybrid 50' ETF on the 28th of this month, combining exposure to NVIDIA and Alphabet with bond holdings in a single product. The launch comes as investor interest grows in bond-hybrid ETFs that blend growth stocks with safe assets amid continued high volatility in the KOSPI. Under current retirement pension regulations, investors can allocate up to 70% of account assets to risky assets like stock ETFs, with the remaining 30% required in safe assets, and bond-hybrid ETFs with 50% or less stock allocation qualify as safe assets under these rules.
Hana Asset Management Launches NVIDIA Alphabet Bond Hybrid ETF on the 28th
Hana Asset Management will launch the '1Q NVIDIA Alphabet Bond Hybrid 50' ETF on the 28th of this month, according to the financial investment industry. This product marks the first ETF in the domestic market to combine NVIDIA and Alphabet (Google) as core holdings. The ETF is structured as a monthly dividend product designed to provide stable cash flow amid stock price fluctuations. Kim Seung-hyun, head of Hana Asset Management's ETF and Quant Solution Division, stated that "as volatility in the global stock market environment increases, it is ultimately necessary to concentrate on stocks with clear dominance," adding that "NVIDIA and Google were judged to be stocks faithful to the most basic yet powerful infrastructure of the AI industry, 'semiconductors' and 'data centers' respectively."
Samsung Electronics SK Hynix Bond Hybrid ETFs Record Strong Returns and Inflows
Bond-hybrid ETFs holding Samsung Electronics and SK Hynix have recorded overwhelming fund inflows and returns. KB Asset Management's 'RISE Samsung Electronics SK Hynix Bond Hybrid 50' achieved a 30.7% return since listing and attracted 3.9 trillion won in assets. Samsung Asset Management's 'KODEX Samsung Electronics SK Hynix Bond Hybrid 50' recorded a 39% return with inflows exceeding 1 trillion won. In contrast, 'RISE Tesla Apple Amazon Bond Hybrid,' which holds a diverse mix of US big tech stocks, generated approximately 2% returns this year with net assets of only 18.6 billion won. Despite this performance gap, KB Asset Management recently launched 'RISE US Space & Robot TOP2 US Treasury Bond Hybrid 50,' which invests 25% each in SpaceX and Tesla with the remaining 50% in US short-term government bonds.
Retirement Pension Regulations Drive Demand for Bond-Hybrid ETF Products
Asset management firms continue to launch products with approximately 50% stock allocation mixed with bonds primarily to target retirement pension (DC and IRP) account safe asset investment regulations. Under current retirement pension supervision regulations, investors can invest up to 70% of account assets in risky assets such as stock ETFs, with the remaining 30% required in safe assets. Bond-hybrid ETFs with 50% or less stock allocation are classified as safe assets under these regulations. This classification allows investors to fill 100% of retirement pension accounts with these products even during volatile market conditions. Yook Dong-hwi, head of KB Asset Management's ETF Product Marketing Division, stated that barbell ETFs "will become an investment tool that investors can utilize long-term in personal pension and retirement pension accounts."
FAQ
What is the '1Q NVIDIA Alphabet Bond Hybrid 50' ETF launching on the 28th?
The '1Q NVIDIA Alphabet Bond Hybrid 50' ETF is a new product from Hana Asset Management that combines holdings in NVIDIA and Alphabet (Google) with bond investments. It is structured as a monthly dividend ETF and represents the first domestic ETF to pair these two specific AI industry companies.
Why are Samsung Electronics SK Hynix bond-hybrid ETFs attracting significant inflows?
Samsung Electronics SK Hynix bond-hybrid ETFs have attracted substantial inflows due to strong performance, with KB Asset Management's product recording a 30.7% return and 3.9 trillion won in assets, while Samsung Asset Management's product achieved a 39% return with over 1 trillion won in inflows. These products also qualify as safe assets under retirement pension regulations despite containing growth stocks.
How do retirement pension regulations affect bond-hybrid ETF investments?
Under current retirement pension supervision regulations, investors can allocate up to 70% of account assets to risky assets like stock ETFs, with the remaining 30% required in safe assets. Bond-hybrid ETFs with 50% or less stock allocation are classified as safe assets, allowing investors to fill 100% of retirement accounts with these products while meeting regulatory requirements.
