ETS and Mixed Funds: A New Investment Direction for Individuals
Exchange-Traded Funds (ETFs) have become increasingly popular among individual investors this year, with notable inflows into overseas mixed-type mutual funds. In the past month alone, these mixed mutual funds attracted 249.4 billion won, exceeding the inflows into ETFs. These funds are founded on diversified investment strategies that include major US tech stocks and US Treasury bonds. Notable products include 'Korea Investment America Tech Step-Up Divestment (A)', 'Our Very Easy US IPO (H)(A-e)', and 'Kiwoom OCIO Target Return Growth Type (C-P2)'.
In the Korean Individual Retirement Pension (IRP) market, investors are also focusing on mixed ETFs that combine stocks and bonds. The IRP allows up to 70% of risky assets, but investors are leveraging these mixed ETFs to potentially increase this ratio to 85%. These mixed-type ETFs are emerging as a strategic approach to maximizing returns and buffering against long-term inflation impacts. Particularly, seasoned investors like Mr. Kim are achieving noteworthy yields in their IRP accounts, with the top 10% of ETF-heavy investors reporting returns as high as 9%, making this strategy prevalent among private bankers.
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