Kiwoom Asset Management said Wednesday it will newly list the "KIWOOM Samsung Electronics & SK hynix Bond Mixed 50 ETF," which invests in Samsung Electronics (005930.KS) and SK hynix (000660.KS) while adding a performance-linked special distribution structure to its monthly payouts.
The ETF invests a combined 50% in Samsung Electronics and SK hynix, allocating 25% to each, while the remaining 50% goes into short-term bonds such as Korean Treasury bonds and Monetary Stabilization Bonds with residual maturities of one year or less. The fund is designed to maintain a 50-50 ratio between stocks and bonds through daily rebalancing.
The distribution structure has also been differentiated. The product is a monthly-distribution vehicle that pays regular distributions on the 15th of each month, funded by dividend income from Samsung Electronics and SK hynix along with bond interest income.
The fund has also adopted a "performance-linked special distribution" policy that realizes a portion of gains to generate additional funding when net asset value (NAV) exceeds a certain level. The special distribution is based on trading gains from the two stocks and is subject to the same tax treatment as domestic stock trading gains, allowing investors to receive it tax-free even in general accounts.
The ETF is also well-suited for retirement accounts. With its bond-mixed structure, it can be fully incorporated into individual retirement pension (IRP) and defined contribution (DC) accounts. Investors who have already filled the 70% ceiling on equity-type assets can use the ETF to expand their overall portfolio equity exposure to as much as 85%.
Samsung Electronics and SK hynix have been leading the index higher amid the recent recovery in Korea's semiconductor industry. Memory chip demand is rising rapidly as investment in data centers and servers expands with the spread of artificial intelligence (AI). Analysts say the industry has entered a full-fledged recovery phase, with server-driven DRAM demand growth accompanied by price increases.
"The fund's distinctive feature is that it concentrates investment in Samsung Electronics and SK hynix while also including bonds to reduce volatility, and strengthens cash flow by considering additional distributions on top of monthly payouts," said Lee Kyung-jun, head of the ETF management division at Kiwoom Asset Management. "It can be a practical alternative for investors who want to utilize the non-risk asset portion of their retirement pension accounts while securing cash flow through monthly distributions."
