Samsung Asset Management recommends KODEX ETFs for year-end pension season

Amid growing attention to year-end pension account contributions and tax deductions, Samsung Asset Management has unveiled a lineup of pension ETFs tailored to different investor profiles.

On Thursday, Samsung Asset Management divided investors into two categories — pension beginners and index-focused investors — and recommended KODEX ETF products suited to each type.

For beginners, the firm proposed the "KODEX Target Date Fund (TDF) 2030·2040·2050·2060" series, which invests in a diversified portfolio of global markets.

The products automatically adjust the ratio of shares to bonds based on the investor's target retirement year, indicated by the number in each product's name. KODEX TDF meets the requirements for qualified TDFs, allowing 100 percent investment through retirement pension accounts.

For index-focused investors, Samsung Asset Management suggested a diversified combination of KODEX US S&P500 and KODEX US Dividend Dow Jones Active. Investing in US large-cap stocks and dividend-growth stocks respectively, the pairing allows investors to participate in US market gains while pursuing stable cash flow through distributions.

KODEX US Dividend Dow Jones Active invests across not only blue-chip companies with more than 10 consecutive years of dividends but also stocks with strong dividend growth. The product offers a buffer against sharp market downturns while targeting long-term dividend growth.

Unlike the standard US Dividend Dow Jones index, which undergoes a single annual rebalancing, the active strategy proactively adjusts holdings in response to changes in corporate earnings outlooks and shareholder return policies, pursuing excess returns. Distributions are paid at the end of each month.

Jeon Yong-woo, head of Samsung Asset Management's Pension OCIO division, said there is no single right answer in pension investment, but every investor has an approach that suits them. "Starting with a TDF and then expanding into diversified index investment as you become more comfortable is a good way to build pension assets over the long term," Jeon said.

On Wednesday, Samsung Asset Management paid a monthly distribution of 117 won per share for the KODEX US S&P500 ETF and 71 won per share for the KODEX US NASDAQ 100 ETF, both for October. The distribution rates were 0.50 percent and 0.27 percent, respectively, with a record date of Friday.