KB Asset Management said on Feb. 26 it launched the RISE Samsung Electronics-SK Hynix bond balanced 50 ETF, which focuses investment on Samsung Electronics and SK Hynix while adding bonds.

The product is a bond-balanced exchange-traded fund (ETF) that allocates 25 percent each to Samsung Electronics and SK Hynix. The remaining 50 percent is invested in high-grade bonds such as short-term government bonds.

The company said the ETF maximises the investment weighting in Samsung Electronics and SK Hynix, which play a key role in the artificial intelligence (AI) semiconductor market, while spreading risk compared with investing in a single stock. It added that it implements a structure suitable for pension assets.

The ETF is classified as a safe asset under defined contribution (DC) and individual retirement pension (IRP) rules for retirement pensions.

Under the current system, retirement pension accounts are limited to 70 percent for investments in risky assets such as equity ETFs. The remaining 30 percent must be invested in safe assets such as principal-protected products or bond-balanced products.

It is also recognised as a bond-balanced product even though its equity weighting is 50 percent, allowing it to be included at 100 percent in retirement pension accounts. If used, it can be expected to have the effect of raising effective equity exposure to above 70 percent on a total account basis.

Yook Dong-hwi (육동휘), head of ETF Product Marketing at KB Asset Management, said, "This product allows investors to invest in the growth engine of leading domestic semiconductor companies while also securing stability required of pension assets through bonds." He added, "It will be an efficient alternative for investors who want more active asset allocation in retirement pension accounts."