Amid heightened volatility in global stock markets, Timefolio Asset Management's "TIME US Nasdaq 100 Bond-Mixed 50 Active exchange-traded fund (ETF)" recorded the top one-year return among domestically listed overseas-investment bond-mixed ETFs. The firm attributes the result to a strategy that invests in the growth potential of U.S. technology stocks while pursuing stability through a bond-mixed structure.
According to the Korea Exchange on Monday, the TIME US Nasdaq 100 Bond-Mixed 50 Active ETF posted a one-year return of 42.37% as of the previous day. This is the highest performance among domestically listed overseas-investment bond-mixed ETFs. The fund showed steady performance across major periods, including 5.80% over one month, 23.88% over three months, and 22.70% over six months.
Global stock markets have recently been buoyed by expectations for structural growth industries such as artificial intelligence (AI), semiconductors, and cloud computing. However, fluctuations have also widened due to pressure from U.S. long-term interest rates, profit-taking in technology stocks, and increased exchange rate volatility. With both growth potential and volatility coming to the fore, selective investment and portfolio volatility management are becoming jointly important.
The TIME US Nasdaq 100 Bond-Mixed 50 Active ETF is structured to hold both Nasdaq 100-centered global tech growth assets and stable assets based on Korean short-term bonds, in line with this market environment, according to the firm. The fund focuses on actively reflecting performance from growth industries such as AI and semiconductors in rising markets, while lowering volatility through its bond-mixed structure during corrections.
The product invests about 50% in global tech stocks centered on the Nasdaq 100, with the remaining roughly 50% in Korean short-term bonds. As it is not subject to risk-asset investment limits, it can be invested in 100% through defined contribution (DC) retirement pensions and individual retirement pension (IRP) accounts. The fund was listed in March last year and currently has 434.5 billion won in assets under management.
"This is not simply a product that invests in the Nasdaq 100. It is differentiated as an active bond-mixed strategy that pursues both growth potential and stability in line with market phases," said Kim Nam-eui, head of the ETF Strategy Division at Timefolio Asset Management. "It is a suitable product for investors who want to invest in the long-term growth potential of U.S. technology stocks but find short-term volatility burdensome, particularly those who want to use both growth assets and stable assets within pension accounts."
