Korea Investment Management Launches Memory Chip ETF Tailored for Pension Accounts

Korea Investment Management is set to list an actively managed ETF with a fifty-fifty allocation: stocks of the world's three largest memory chipmakers plus high-grade Korean bonds.

This product structure is designed to capture the growth benefits of high-bandwidth memory (HBM) driven by the expansion of AI infrastructure, while simultaneously meeting the compliance requirements for a 100% allocation in pension accounts through its holdings of short-term government bonds.

The asset management company announced on the 3rd the launch of the new ACE Global Memory Semiconductor TOP3 Bond Mixed Active ETF.

The fund tracks the FnGuide Global Memory Semiconductor TOP3 Bond Mixed Index (denominated in Korean won), compiled by FnGuide.

The equity portion holds Micron Technology (NASDAQ: MU), Samsung Electronics, and SK Hynix — three companies that dominate core memory segments including DRAM, NAND flash, and HBM.

The remaining 50% of the portfolio consists of bond assets, including short-term government bonds and monetary stabilization bonds.

Bond selection criteria include government bonds with a remaining maturity of more than 1 month and less than 2 years, as well as monetary stabilization bonds with maturities of 1 to 2 years, with daily rebalancing.

Because bonds make up half of the portfolio, the fund has lower volatility and is classified as a safe asset in defined contribution pension plans and individual retirement pension accounts, allowing investors to allocate up to their entire contribution to the fund.

The fund adopts a monthly dividend mechanism, targeting pension investors who prefer stable cash flow.

Dividend sources include stock dividends, bond interest, and capital gains within the portfolio; the last trading day of each month serves as the record date, with dividends distributed to investors at the beginning of the following month.

Kim Won-jae, a fund manager in Korea Investment Management's Global Equity Investment Division, stated: "This product focuses on the global memory chip sector, featuring three leading companies with high industry barriers, while reducing downside risk through a mixed stock-bond structure. For investors who want to fully utilize their pension account's safe asset quota while capturing the upward cycle of the semiconductor industry, this is an ideal choice."