|A logo of Samsung Asset Management|
This marked the first dollar-denominated stock index fund in Korea’s asset management industry, which allows dollar holders in South Korea to indirectly invest in popular foreign stocks in the US, the company said.
The S&P 500 comprises of 505 constituents as of July, including technology stocks Apple, Microsoft, Amazon.com and Facebook. The stock index is calculated for 11 sectors, with information technology weightings topping at nearly 30 percent, followed by the health care sector and consumer discretionary, as of end-August.
The index fund started selling in Korea‘s fund distributors including Shinhan Bank on Friday.
The news comes as Korean investors were witnessing a stronger dollar against the Korean won in the face of US economic recovery and tapering woes in the global financial market. The greenback rose 6.6 percent against the local currency from January to August.
Samsung Asset is the largest asset manager in Korea, with its assets under management approaching 300 trillion won ($259.4 billion) in early September.