Bond-hybrid ETFs combining Samsung Electronics and SK Hynix stocks with 50% bonds are attracting attention from both conservative and aggressive investors amid semiconductor market volatility, according to Growth Research. Over the recent 3 months, these hybrid products showed lower volatility than individual stocks: Samsung Electronics averaged 4.55% gains and -3.98% losses, SK Hynix averaged 5.25% gains and -4.61% losses, while KODEX Samsung Electronics SK Hynix Bond Hybrid 50 ETF averaged 2.24% gains and -2.30% losses, providing downside protection. Han Yong-hee, researcher at Growth Research, stated that bond-hybrid investment strategies offer relative asset protection, solving accessibility and rebalancing challenges individual investors face when constructing bond-mixed portfolios themselves.
Bond-Hybrid ETFs Show Lower Volatility Over Recent 3 Months
Growth Research data revealed that bond-hybrid ETF volatility was lower than individual stocks over the recent 3 months. Samsung Electronics' average day-over-day rise was 4.55% and average fall was -3.98%. SK Hynix recorded an average rise of 5.25% and average fall of -4.61%. KODEX Samsung Electronics SK Hynix Bond Hybrid 50 ETF showed an average rise of 2.24% and average fall of -2.30%, enabling downside defense.
Han Yong-hee explained that bond-hybrid investment strategies allow investors to protect their assets relatively, noting that bonds have low accessibility, difficult stock selection, and challenging self-rebalancing. He stated that bond-hybrid ETFs solve these problems at once.
Pension Safe Asset Classification Enables Higher Risk Allocation
Bond-hybrid ETFs are classified as safe assets in pension accounts. Han stated that while these products may appear suitable only for risk-averse investors, they are actually useful for aggressive investors for this reason. He explained that instead of investing the required 30% safe asset allocation solely in deposits and bonds, investing in bond-hybrid ETFs with 50% stock weighting allows investors to allocate 85% of their pension account to risky assets.
Three Products Differ in Bond Type and Fee Structure
RISE Samsung Electronics SK Hynix Bond Hybrid 50 is the starting point of 'Samsung-SK Hynix bond-hybrid' products. Its total fee is 0.01%, very low, and the compound interest effect can be maximized with long-term investment.
KODEX Samsung Electronics SK Hynix Bond Hybrid 50 differs from other products by incorporating mid-term government bonds maturing in March 2031. Han stated that due to the long maturity bond characteristics, the coupon rate is high, allowing long-term investors to expect additional asset growth through government bond interest.
KIWOOM Samsung Electronics & SK Hynix Bond Hybrid 50 incorporates only government bonds with maturity under 1 year. This minimizes ETF price fluctuations caused by bond price changes. Han explained that unlike other products, when profits occur in the stock portion, the asset manager sells some and distributes it as dividends, resulting in relatively higher dividend yield.
FAQ
What volatility did Samsung Electronics and SK Hynix stocks show over the recent 3 months?
Samsung Electronics averaged 4.55% gains and -3.98% losses day-over-day over the recent 3 months. SK Hynix averaged 5.25% gains and -4.61% losses during the same period, according to Growth Research data.
How do bond-hybrid ETFs benefit aggressive investors in pension accounts?
Bond-hybrid ETFs are classified as safe assets in pension accounts despite containing 50% stocks. This classification allows aggressive investors to allocate 85% of their pension account to risky assets by placing the required 30% safe asset allocation into bond-hybrid ETFs rather than deposits or pure bonds, according to Han Yong-hee of Growth Research.
What are the main differences among the three Samsung-SK Hynix bond-hybrid ETF products?
RISE Samsung Electronics SK Hynix Bond Hybrid 50 has a 0.01% total fee. KODEX Samsung Electronics SK Hynix Bond Hybrid 50 incorporates government bonds maturing in March 2031 with higher coupon rates. KIWOOM Samsung Electronics & SK Hynix Bond Hybrid 50 uses only government bonds with under-1-year maturity and distributes dividends from stock profits.
