Hanwha Asset Management announced on the 25th that it has reduced the total expense ratio of its ‘PLUS US S&P500 Growth Stocks’ ETF from 0.04% to 0.0062%.
This reduction in fees is aimed at lowering the cost burden for investors who wish to invest in major U.S. growth stocks. Especially for ETFs related to indices representing the U.S. market, such as the S&P500, a small difference in fees can lead to significant differences in returns over a long period, compounded by investors frequently using pension accounts.
The ‘PLUS US S&P500 Growth Stocks ETF’ is based on the widely invested S&P500 Index in the U.S. stock market but focuses more on stocks with higher growth potential using the S&P500 Growth Index as its underlying index. The ETF emphasizes sectors with high growth potential such as artificial intelligence (AI), semiconductors, cloud, autonomous driving, and humanoids, aiming for higher returns compared to the S&P500. At the same time, it retains the S&P500’s advantage of diversifying investments across various sectors like healthcare, finance, and consumer goods.
As of the 20th, the periodic returns of the PLUS US S&P500 Growth Stocks ETF are 1.8% for the last month, 10.7% for the last three months, and 14.3% since its inception, outperforming the S&P500 Index (converted to Korean won) over the same periods.
Despite the expected larger capital gains compared to the S&P500, the PLUS US S&P500 Growth Stocks ETF has a lower dividend rate (distribution rate), making it relatively unaffected by recent changes such as the abolition of the foreign tax credit system. This abolition has led to a trend of some funds withdrawing from domestic ETFs investing in major overseas indices with high distribution rates.
Kim Jeong-seob, head of Hanwha Asset Management’s ETF Business Division, stated, “With this fee reduction, the PLUS US S&P500 Growth Stocks ETF has achieved top-level competitiveness in terms of investment costs.” He further explained, “Choosing a low fee alone is not sufficient as the fee difference for S&P500-related products is minimal, around 0.01% on a total synthetic expense ratio basis.”
He emphasized, “As the PLUS US S&P500 Growth Stocks ETF has consistently outperformed the S&P500, this fee reduction will offer investors a long-term growth opportunity.”