Rising Popularity of ETFs and Changing Pension Investment Strategies
The popularity of Exchange Traded Funds (ETFs) is growing among pension investors, driven by an impressive return of 38.8% over the past year, significantly exceeding the average. ETFs are attractive to investors due to their low cost, real-time tradeability, and tax deferral benefits when used in pension accounts. This has led to the continuous release of products that balance stability and profitability.
Hanwha Asset Management has introduced six investment products for pension savings and IRP accounts at the year's end, aiming for long-term stable returns. It recommends ETFs such as 'PLUS High Dividend Buyback', 'PLUS S&P500 Bond Blend 50', and 'PLUS Global HBM Semiconductor', which focus on high dividends, bond blends, and the semiconductor industry, emphasizing long-term growth potential.
According to analysis by Samsung Securities, there are clear generational differences in ETF investments within retirement pension DC accounts. The 2030 generation tends to focus on the U.S. S&P500 and Nasdaq100 indices, while the 4050 generation exhibits a more conservative approach by adding safe assets such as gold. The 60s generation adopts a diversified investment strategy, encompassing semiconductors, government bonds, and technology stocks. These trends indicate an accelerated transition to performance-linked investment products in pension investments.
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