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Bloomberg
01-07-2025
- Business
- Bloomberg
KIC's Park Says Treasuries Remain Core Portfolio
CC-Transcript 00:00One of the big questions that's come up this year was, you know, the role of US treasuries and whether or not, you know, people have overinvested or overallocated into Treasuries as the sovereign wealth fund. I know you guys have exposure to U.S. Treasuries. How are you looking at your holdings right now? And are you happy with your exposure to U.S. Treasuries? In the country, though, we are happy to invest, with an investment in the U.S. Treasury in a sense that the U.S. Treasury bond keeps are very strong, that liquidity and stable returns. And also, regardless of any sort of market volatilities, we are expecting a stable and the solid returns in the short term. So for the time being, we maintain our portfolio, the Treasury bond, as are our two core portfolios. But in the longer term we are mindful of any risks from the supply, supply change from the investors and also to the... Some are on policy uncertainties long term. Do you need to be rethinking that? How are you looking at your exposure to U.S. Treasuries longer term and how are you looking at potential alternatives to U.S. treasuries? Are there alternatives? We are now reconsidering our asset allocation. We understand that our long term returns are largely depend on our asset allocation. So among the total fixed income investments, we are also interested in investing to the credit and credit bond and other other to the structural bonds, along with the U.S. Treasury. And also more fundamentally, we are now considering to our asset allocation between the fixed income to the global equity. Do you see alternatives to public fixed income and would you be increasing you're looking to increase your weighting into things like private credit, for example, in private private lending? And is that what role do you see that part playing in your portfolio? That's a little bit. I'll start with the... The investment in fixed income. Now the we diversify our portfolio to alternative investments, including, as you said, private equity, the private credit and the infrastructure. So the more we believe the alternative investment, it will be our core assets in our portfolio in the longer term. So we are we plan to invest continuously, fairly and steadily pace the philosophy behind alternatives or going into, say, private credit, for example, is that is that because of returns or is that because of predictability and stability? What role why are you doing that? Well, always to the edge to support investment. Our key objective is the diversification of the asset. So the higher return is also very the is our top priority. But at the same time, the stability is is our one of the key objective is to manage our portfolio. So we understand alternative investment is very goal upon a long term investment. So we expect more reasonable risk return profile compared to the traditional investment, public investment. So among the alternative assets or we are trying to diversify our portfolios, as you mentioned, the private credit is is to the growing industry and also to we we are interested in investment in infrastructure where you already have a New York office, just a cloud that's been in for 15 years. But you have plans to is it to branch out a specific part of the fund that looks at us out of New York? What's what are you looking to do specifically there and why? Strengthening the function and the role of the overseas offices is these are all key objectives. Do you have a timeline of when you plan to do that? And do you have an initial. Amount in mind that you're looking to invest specifically there in in alternatives? The U.S. is already our largest the place for our alternative investment. And later this year, we are trying to establish a new dedicated pond which will the how big is it fund is we we are starting from the very small side and at the same time it's relative for us sovereign wealth fund if you can give guidance but but what's smallest. Yeah. Is is a smaller size it's it's compared to our to the typical investment in our country, investment to the size is very small but we want identify the very good investment opportunities in all states. So that's why we establish that this dedicate pond in New York and then we are doubling the performance of this operation, and then we can expand both inside and also in other details such where is it? Is it accurate to say that see is going overweight on the US as far as private markets go? And if that is accurate, tell us tell us why and how and do you do you have any concerns about your exposure to the US dollar, for example? Our exposure to U.S. is a heavy, but compared to other investors, I think our exposure to U.S. is at the reasonable level at this moment and also to hedge our longer term is investor rather than responding to just short term the volatility. We are trying to focus on that more long term growth potential and the structural trend that says we expect U.S. market trends continue, especially in tech sector. So hopefully we can see more opportunities. You mentioned China and some of the I guess some of the opportunities that you are looking at there. I know you have some exposure there as well. Could you elaborate more on that? Like what what future opportunities do you see in in China, whether it is public or private markets? And what would it take for you to then, I guess, establish an office to your point, by to then increase your on the ground capabilities? Yeah. In terms of Chinese market, it's a little bit tricky and it's complicated to invest in Chinese market. Is that an economic consideration and a geopolitical comparison force? And the Chinese tech sector is very promising. At the same time, Chinese private property market and macro condition is a little bit unclear. Also, I just say that in the political point of view, no, we see the the rivalry and the tension between the U.S. and China. So we have to concede at this point and we expect this trend to will be continuing for the time being. So now we are also seeing some fundamental change over world economic order. So now from the globalization tool, where we have more protectionism and supply chain disruption. So every countries are trying to protect their industries. Key industries, including air and high tech, is one of them.
Yahoo
26-06-2025
- Business
- Yahoo
The Rise of the Buffer ETF
BlackRock is betting on the future of buffers. Buffer ETFs that limit downside risk but also have caps on upside gains, are having a moment. Assets have ballooned from $5 billion in 2019 to $181 billion last year, according to recent BlackRock and Morningstar data. It's expected to triple to $650 billion by the end of the decade. Despite the higher fees, buffer ETFs earn more than 10% per dollar invested per year over the past five years, per Morningstar. The dramatic rise in buffer ETFs' AUM reflects current market volatility and geopolitical turbulence, signaling a sea change in how financial professionals think about mitigating portfolio risk. 'These products have staying power,' said Charles Champagne, head of ETF strategy at Allianz Investment Management. 'They definitely have longevity.' READ ALSO: An ETF for the Buy Now, Pay Later Market and RFG's Bluemonte Jumps Into ETFs Defined outcome ETFs allow investors to buy stocks and sell them at their starting price even if prices fall, preventing losses, while also selling call options above current stock prices, limiting upside yields. The SEC's 2019 ETF rule streamlined fund launches and led to a boom in new buffered products, which are bought and sold at the beginning and end of a predetermined period. Down markets, like the investing environment of 2022, have also had a significant impact on buffers' popularity, since they are increasingly regarded as a stand-in for fixed-income when equity markets are down, according to Champagne. Although the buffer market is currently highly concentrated — First Trust and Innovator dominate the space — it is likely to grow 'from [both] an issuance standpoint and an asset standpoint,' he added. 'When the market's looking iffy, advisors tend to allocate more to fixed-income for that diversification effect and protection,' Champagne said. 'We've stress-tested portfolios… and what we found was, if you take about 10% away from fixed-income and 10% away from the equity allocation and move it into a buffer, it generally outperforms over a long-term horizon.' Buffer ETFs are also being launched at breakneck speed. According to the BlackRock study: In the past five years, nearly 500 buffer ETFs have been launched. Last year, 27% of all new ETF listings were buffer funds. Over the Hurdle (Rate). Much of the recent rise in popularity can also be attributed to the market swings following President Trump's 'Liberation Day' tariffs, as investors seek safe havens. Still, the period in which an investor buys a buffer can have a strong impact on its performance. AllianzIM offers a unique uncapped structure buffer ETF, with a limit of 15% on the downside but unlimited upside yields beyond a given 'hurdle rate.' 'It's a really strong structure when you have a bullish view on the market,' Champagne said. This post first appeared on The Daily Upside. To receive exclusive news and analysis of the rapidly evolving ETF landscape, built for advisors and capital allocators, subscribe to our free ETF Upside newsletter.
Reuters
23-06-2025
- Business
- Reuters
Online trading platform Plus500 gains approval to enter Canada's OTC market
June 23 (Reuters) - London-listed Plus500 (PLUSP.L), opens new tab said on Monday that it has received approval from the Canadian Investment Regulatory Organization that will allow the online trading platform to offer its services in the over-the-counter market. The company, which provides equity, commodity and options trading services and is active in more than 60 countries, has made investments in new products and expanded into global markets. In March, it bought Indian financial services company Mehta Equities for about $20 million. Plus500 said in April that it expects annual results to exceed market expectations, supported by increased trading activity amid global market volatility.
Yahoo
23-06-2025
- Business
- Yahoo
Online trading platform Plus500 gains approval to enter Canada's OTC market
(Reuters) -London-listed Plus500 said on Monday that it has received approval from the Canadian Investment Regulatory Organization that will allow the online trading platform to offer its services in the over-the-counter market. The company, which provides equity, commodity and options trading services and is active in more than 60 countries, has made investments in new products and expanded into global markets. In March, it bought Indian financial services company Mehta Equities for about $20 million. Plus500 said in April that it expects annual results to exceed market expectations, supported by increased trading activity amid global market volatility. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-06-2025
- Business
- Yahoo
1 High-Yield Vanguard ETF That Is a No-Brainer for Income
Exchange-traded funds (ETFs) can be a great way to diversify. They can also generate passive income through dividends. This ETF, in particular, has a high dividend yield and represents a good sector to have some exposure to. 10 stocks we like better than Vanguard World Fund - Vanguard Energy ETF › Given the market volatility this year, there are likely investors out there who would prefer an investment strategy that avoids some of the stressful market swings that have started to become the norm. After all, the broader benchmark S&P 500 index has already experienced multiple swings of nearly 20% both up and down, enough activity to make anyone's stomach churn. One way to avoid some of the stress in today's market is to diversify your investments across a broad basket of stocks through an exchange-traded fund (ETF). It's even better if you find an ETF that can generate passive income because then you are still making money each quarter and every year with much more predictability. Here's one high-yield Vanguard ETF that is a no-brainer for passive income. The energy sector hasn't exactly crushed it this year. Many experts expect global oil prices to remain soft on weak demand, while the Organization of the Petroleum Exporting Countries (OPEC) moves to increase production, which will increase supply. However, the Vanguard Energy ETF (NYSEMKT: VDE) is still trading up close to 125% over the last five years (as of June 10). The ETF has 112 stocks in it and controlled $8.1 billion in net assets at the end of April. The fund's strong performance can be attributed mainly to the fact that ExxonMobil makes up nearly a quarter of its assets. The global oil and gas company has greatly improved operations over the last five years, controlling costs, generating strong returns on capital, growing free cash flow, and returning lots of capital to shareholders. ExxonMobil is a strong dividend payer, and between dividends and share repurchases, it returned $140 billion in capital to shareholders between 2019 and 2024. The ETF's dividend yield is 3.27% and the fund has a five-year average yield of close to 3.7%. The three largest sectors in the ETF are integrated oil and gas (39.3%), oil and gas exploration and production (25.7%), and oil and gas storage and transportation (17%). Here are the fund's top 10 holdings and their weightings: Rank/Holding ETF Weighting Rank/Holding ETF Weighting 1. ExxonMobil 24.45% 6. Kinder Morgan 3.00% 2. Chevron 13.29% 7. Cheniere Energy 2.99% 3. ConocoPhillips 6.61% 8. Oneok 2.91% 4. Williams Companies 4.06% 8. Schlumberger 2.59% 5. EOG Resources 3.55% 10. Marathon Petroleum 2.55% Source: Vanguard. Holdings are as of April 30, 2025. Clearly, the Vanguard Energy ETF has a solid track record of paying a high-yielding dividend. I also think having some exposure to energy can serve investors well by acting as a hedge. While oil prices have been down, many of the world's richest investors, like Warren Buffett, are betting on energy prices going higher based on their latest stock purchases. It's possible that these investors think the world will be more reliant on oil and gas in the future than many believe. They are finite assets, so wealthy investors may see advantages to owning large oil and gas assets. According to the U.S. Energy Information Administration's International Energy Outlook report in 2023, global supplies of crude oil, other liquid hydrocarbons, and biofuels are expected to meet the world's demand for liquid fuels through 2050. Perhaps Buffett and other institutional investors betting on oil are taking the long view that supply could eventually become constrained. Or perhaps they think the oil and gas companies are positioned to adopt renewable energy or other lower-carbon sources. Regardless, energy stocks can be a decent hedge in a potential scenario when oil prices surge. The stocks in the Vanguard Energy ETF should benefit in this scenario, while rising prices could significantly increase costs for many other sectors. Before you buy stock in Vanguard World Fund - Vanguard Energy ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard World Fund - Vanguard Energy ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cheniere Energy, Chevron, EOG Resources, and Kinder Morgan. The Motley Fool recommends Oneok. The Motley Fool has a disclosure policy. 1 High-Yield Vanguard ETF That Is a No-Brainer for Income was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
