Hanwha Asset Management announced on the 10th that it will list the ‘PLUS U.S. S&P500 Treasury 50 Active ETF,’ which invests with a 50% weight in the S&P500 index, a representative index of the U.S., and 50% in U.S. ultra-short Treasury bonds.
The ETF was launched for investors who wish to make long-term investments in the S&P500 with a high proportion within retirement pension (DC, IRP) accounts. Currently, regulations allow up to 70% of assets in retirement pension accounts to be invested in risk assets like stocks. The remaining 30% must be filled with safe assets such as deposits and bonds. Among ETFs, bond-type ETFs and bond-mixed ETFs are classified as safe assets.
The PLUS U.S. S&P500 Treasury 50 Active ETF invests 50% in the S&P500 and 50% in U.S. ultra-short Treasury bonds with less than three months remaining maturity. It includes the maximum possible allocation (50%) to the S&P500 in bond-mixed ETFs. Up to 85% of the retirement pension account can be invested in the S&P500 index.
The investment method involves allocating 70% of the retirement pension to the PLUS U.S. S&P500 ETF, a foreign stock-type ETF, and the remaining 30% to the PLUS U.S. S&P500 Treasury 50 Active ETF. This enables an additional 15% investment effect in the S&P500 index.
The PLUS U.S. S&P500 Treasury 50 Active ETF also invests 50% in U.S. ultra-short Treasury bonds with less than three months maturity. These bonds have low interest rate sensitivity and can provide stable interest income.
In a situation where the U.S. base interest rate (4.25~4.5%) is higher than the Korean base rate (2.5%), the investment attraction of U.S. ultra-short Treasury bonds increases. They serve as safe assets while offering relatively higher expected returns.
Kim Jung-sup, Head of the ETF Business Division at Hanwha Asset Management, explained, “For investors who want to invest their retirement pension assets in the S&P500 as much as possible, allocating the safe asset portion to the PLUS U.S. S&P500 Treasury 50 Active ETF would be a good option.” He added, “The combination of the S&P500 and U.S. ultra-short Treasury bonds can fully reap the fruits of growth while reducing volatility, making it a recommended long-term investment for retirement pension accounts.”