"What is most important right now is not to leave the market. If the assets you are invested in have long-term growth potential like semiconductors and their profits have not been eroded, do not rashly sell them off due to volatility."
Yuk Dong-hwi, Head of ETF Product Marketing Division at KB Asset Management, said this during a recent meeting with Money Today. This judgment stems from the view that although the market, which had surged sharply in the short term, has undergone a correction, it was not caused by a financial system crisis or erosion of corporate fundamentals.
He advised that in volatile markets, it is necessary to re-examine the 'core' of one's portfolio. This involves centering on products that can mitigate volatility, such as mixed-type ETFs allocated to representative indices or assets, while adding growth themes like semiconductors. Head Yuk explained, "Products designed to generate 'alpha' in returns tend to have high volatility. If such products occupy the largest portion of a portfolio, it is necessary to take time to restructure them."
Among asset allocation-type ETFs, there is this year's hit product in the asset management industry: 'RISE Samsung ElectronicsSK Hynix Bond Mixed 50'. This product invests up to 25% each in Samsung Electronics and SK Hynix, with the remainder invested in high-quality bonds such as government treasury bonds. While several bond-mixed ETFs existed in the market, this was the first product to feature domestic growth stocks rather than foreign ones. Launching amidst a domestic semiconductor boom, it gained explosive popularity and, as of the 13th, recorded net assets of 4 trillion 66 billion won just six months after listing.
He recommended a strategy of using this ETF not primarily as a means to maximize stock allocation within pension accounts, but rather as a core asset allocation product within a portfolio. Head Yuk stated, "It would be good to approach 'RISE Samsung ElectronicsSK Hynix Bond Mixed 50' as an asset allocation product similar to TDFs (target-date funds), with allocations in both stocks and bonds. While investing in individual stocks is difficult within pension accounts, holding mixed-type ETFs allows one to gain both growth potential and stability."
He emphasized that the overall investment direction must align with the trends of the AI era. He viewed AI value chain stocks, such as semiconductors and AI infrastructure, as assets that will not waver based on long-term growth potential. Head Yuk noted, "When volatility is high, it is difficult to be certain that a stock has hit its bottom even if prices drop significantly. Therefore, I recommend investing gradually in items with major momentum like AI without rushing, and holding them even if returns turn negative."
KB Asset Management also focused on the AI trend as an asset theme with growth potential, forecasting that leadership will shift from semiconductor hardware to the physical AI market next. The listing of 'RISE Hyundai Motor Fixed Physical AI' in May last year and the launch of 'RISE US Space & Robotics TOP2 US Bond Mixed 50' last month were both derived from this trend.
Head Yuk remarked, "Among domestic companies comparable to SpaceX, a leading physical AI company, is Hyundai Motor." He further forecasted, "The complex physical data inherent in the automotive industry can be utilized to build robots; therefore, the Hyundai Motor Group is expected to undergo re-rating (revaluation) driven by physical AI in the future."
He introduced a method of keeping 'ammunition' set aside for dollar-cost averaging by placing it into 'RISE Money Market Active'. KB Asset Management was the first asset manager in the industry to introduce money market active products to the ETF market. Head Yuk said, "You can earn profits at least equivalent to bank deposits while being able to deposit and withdraw funds at any time. It is about investing in short-term bond ETFs to ensure liquidity is not idle but continuously working."
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