Question 1

When should I rebalance?

Accepted Answer

Consider rebalancing when any asset's weight deviates more than 5% from its target. A quarterly or semi-annual review is recommended. Combining band rebalancing (±5–10%) with calendar rebalancing is an efficient approach.

Question 2

When should I use the additional cash feature?

Accepted Answer

If you plan to invest additional funds during rebalancing, use the additional cash feature to calculate the optimal portfolio weights including the new capital. You can set it by percentage or fixed amount.

Question 3

How are real-time prices updated?

Accepted Answer

Real-time market prices are fetched via the Yahoo Finance API and updated automatically during market hours. Session caching ensures fast load times.

Question 4

Are my settings automatically saved?

Accepted Answer

Yes, your portfolio composition and all settings are automatically saved to your browser's local storage and will be restored on your next visit.

Question 5

How do I change target weights?

Accepted Answer

You can directly edit the target weight for each ETF in the "Target Weight" column of the table. Changes are saved automatically and immediately reflected in the rebalancing calculations.

Question 6

What is ETF rebalancing?

Accepted Answer

ETF rebalancing is the process of readjusting the asset weights in your portfolio to match your target allocations. As market movements shift your weights, your risk profile changes — regular rebalancing through buying and selling keeps your portfolio in balance.

Question 7

Which ETFs are supported?

Accepted Answer

Major US ETFs such as SCHD, QQQ, JEPI, VOO, SPY, VTI, AGG, TLT, and GLD are supported. Use the search feature to find any ETF and add it to your portfolio.

Question 8

How are taxes handled when rebalancing?

Accepted Answer

In Korea, the first KRW 2.5 million in annual gains from selling overseas ETFs is tax-free; gains above that are subject to a 22% capital gains tax. Using an ISA account can reduce your tax burden. This calculator also supports tax simulations.

Question 9

What is the difference between the asset allocation calculator and the rebalancing calculator?

Accepted Answer

The asset allocation calculator helps you design optimal weights based on your age and risk tolerance. The rebalancing calculator computes the buy/sell amounts needed to restore a predetermined target allocation. Using both together is most effective.

Question 10

What is the compound interest effect?

Accepted Answer

Compounding means your investment returns are reinvested so that earnings generate further earnings. Over the long term, compounding is extremely powerful — reinvesting ETF dividends maximizes this effect. Try the compound interest calculator to simulate it.

Question 11

How many ETFs should I hold in my portfolio?

Accepted Answer

A portfolio of 3–7 ETFs is generally appropriate. Too few means insufficient diversification; too many makes management difficult and increases rebalancing costs. Choose representative ETFs for each asset class: equities, bonds, and alternatives.

Question 12

Should I choose SCHD or JEPI?

Accepted Answer

SCHD focuses on dividend growth and favors long-term capital appreciation. JEPI uses options premiums to deliver high monthly income. If your goal is capital growth, SCHD is the better fit; if you need immediate cash flow, JEPI is more suitable. Compare them directly in the ETF comparison tool.

Question 13

How is the exchange rate reflected?

Accepted Answer

US ETF prices are displayed in USD, and the current exchange rate is automatically applied when converting to KRW. Because exchange rate movements also affect your returns, it is useful to check both USD and KRW figures.

Question 14

Can I back up my portfolio data?

Accepted Answer

You can save or share your current settings as a URL using the portfolio sharing feature. Accessing that URL from another device will restore the same portfolio.

Question 15

What portfolio strategy do you recommend for beginners?

Accepted Answer

For ETF beginners, a simple three-fund portfolio of Equities (VOO or VTI) 60% + Bonds (AGG or BND) 30% + Gold (GLD) 10% is recommended. Check the portfolio strategy page for a variety of curated strategies.

Question 16

How are US ETF dividends taxed?

Accepted Answer

US ETF dividends are subject to a 15% US withholding tax. Under the US–Korea tax treaty, no additional Korean tax applies, so the withholding tax is the final tax on dividends. However, if your total annual financial income exceeds KRW 20 million, it may be subject to comprehensive income tax.

Question 17

When are ETF dividends credited?

Accepted Answer

Most US ETFs pay dividends quarterly (March, June, September, December). Monthly-dividend ETFs such as JEPI and JEPQ pay every month. For Korean brokerage accounts, dividends are typically credited in USD 2–5 business days after the payment date.

Question 18

Should I choose QQQ or VOO?

Accepted Answer

VOO tracks the S&P 500 (500 large-cap US stocks) and offers excellent diversification. QQQ tracks the Nasdaq 100 (tech-heavy) and has higher growth potential. VOO suits stable long-term investors; QQQ is better for those seeking tech-sector growth. A 6:4 (VOO:QQQ) blend is also a solid strategy.

Question 19

When is the best time to buy ETFs?

Accepted Answer

Timing the market is extremely difficult. For long-term investors, the DCA (Dollar Cost Averaging) strategy — investing a fixed amount on a set day each month — is most effective. US market hours of 10 a.m.–3 p.m. ET (midnight–5 a.m. KST) tend to have tighter spreads.

Question 20

Is it safe to hold leveraged ETFs (like TQQQ) long-term?

Accepted Answer

Leveraged ETFs track a multiple of daily returns and are unsuitable for long-term holding. In sideways markets, volatility decay erodes value continuously — TQQQ fell 79% when the Nasdaq dropped 33% in 2022. Use them only for short-term trading and keep the position under 5% of your portfolio.

Question 21

How does a rising exchange rate affect ETF returns?

Accepted Answer

A rising USD/KRW rate (weakening KRW) boosts the KRW-denominated returns of US ETFs. For example, if an ETF rises 10% in USD terms and the exchange rate rises 5%, your KRW return is roughly 15%. The reverse is also true — a stronger KRW reduces returns, making the exchange rate an important variable.

Question 22

What is the difference between SPY and VOO?

Accepted Answer

Both ETFs track the S&P 500 and deliver nearly identical performance. The key differences are expense ratios (SPY 0.09% vs VOO 0.03%) and liquidity. VOO is better for long-term investing due to its lower cost; SPY is preferred for short-term trading or options strategies due to its superior liquidity.

Question 23

When should I cut losses on an ETF?

Accepted Answer

For long-term index ETFs (VOO, QQQ), holding or buying more during a market decline tends to be more advantageous than cutting losses — the S&P 500 has recovered from every drawdown historically. For leveraged or thematic ETFs, however, set a mechanical stop-loss (e.g., -15 to -20%) in advance.

Question 24

Can I trade ETFs on US market holidays?

Accepted Answer

US ETF trading is not available on US market holidays (New Year's Day, Independence Day, Thanksgiving, Christmas, etc. — roughly 9–10 days per year). Orders placed through Korean brokerages will be executed on the next trading day. US market hours are 9:30 a.m.–4 p.m. ET (11:30 p.m.–6 a.m. KST; 10:30 p.m.–5 a.m. KST during daylight saving time).

Question 25

How many ETF positions should I hold?

Accepted Answer

Build a core portfolio of 3–5 ETFs and optionally add 1–2 thematic ETFs. For example, a core of VOO (US equities) + AGG (bonds) + SCHD (dividends) with GLD (gold) or SMH (semiconductors) as satellites works well. More than 10 positions makes management difficult and increases rebalancing costs.

Question 26

How much tax can I save by investing in ETFs through an ISA account?

Accepted Answer

An ISA (Individual Savings Account) in Korea provides a tax exemption of up to KRW 4 million per year for the low-income type (KRW 2 million for the general type), with gains above that taxed at a flat 9.9%. Compared to the 22% capital gains tax in a regular account, the tax savings are substantial. A minimum holding period of 3 years applies; only Korea-listed ETFs are eligible.

Question 27

Can I invest in overseas ETFs through a pension savings account?

Accepted Answer

You cannot invest directly in US ETFs through a pension savings account, but you can gain indirect exposure via Korea-listed overseas ETFs (e.g., TIGER US S&P 500, KODEX US Nasdaq 100). Contributions up to KRW 6 million per year qualify for a tax credit of 13.2–16.5%, making the tax benefit significant.

Question 28

What is the dividend payment schedule for ETFs?

Accepted Answer

Dividend schedules vary by ETF. Most ETFs — VOO, QQQ, SCHD, etc. — pay quarterly (March, June, September, December). Monthly-dividend ETFs such as JEPI, JEPQ, and DIVO pay every month, as do some bond ETFs like AGG and BND. You must hold the ETF before its ex-dividend date to receive that period's dividend.

Question 29

How does a rising USD/KRW rate affect US ETF returns?

Accepted Answer

A rising USD/KRW rate (weakening KRW) increases the KRW value of your USD assets and has a positive effect on returns. Conversely, a falling rate (strengthening KRW) reduces returns. To reduce currency exposure, consider currency-hedged ETFs or pre-converting to USD when the rate is low.

Question 30

How do covered-call ETFs (JEPI, QYLD) work?

Accepted Answer

Covered-call ETFs hold stocks while selling call options to earn option premiums. JEPI is S&P 500-based and targets a distribution yield of 7–9% annually; QYLD is Nasdaq 100-based and targets 10–12%. Because upside is capped in bull markets, these ETFs are better suited for generating cash flow than for long-term capital growth.

Question 31

Can you recommend an ETF dollar-cost averaging portfolio for KRW 500,000/month?

Accepted Answer

With KRW 500,000/month, a VOO (S&P 500) KRW 300,000 (60%) + SCHD (dividend growth) KRW 100,000 (20%) + AGG (bonds) KRW 100,000 (20%) combination is recommended. For an aggressive approach, increase QQQ; for a conservative approach, raise the bond weighting. Buying on the same day each month helps average down your cost basis.

Question 32

How do I report capital gains tax on US ETFs?

Accepted Answer

If you realize more than KRW 2.5 million in gains from selling US ETFs in a given year, you must file a capital gains tax return in May of the following year via Hometax. Base your filing on the capital gains statement provided by your brokerage; the tax rate is 22% (20% capital gains tax + 2% local income tax). Late filing incurs penalties, so observe the deadline.

Question 33

What is the difference between an ETF and an index fund?

Accepted Answer

Both ETFs and index funds track a specific index, but ETFs trade in real time on a stock exchange while index funds are priced and transacted once per day at NAV. ETFs generally have lower expense ratios (VOO at 0.03% vs a typical index fund at 0.5–1%) and offer more trading flexibility. Index funds can be more convenient for small, regular investments; ETFs are better when flexible trading is needed.

Question 34

Should I choose GLD or IAU for gold ETF exposure?

Accepted Answer

Both GLD and IAU track physical gold and deliver nearly identical performance. GLD has a higher expense ratio (0.40%) but greater liquidity, making it suitable for large trades. IAU is cheaper (0.25%) and better for long-term holding. Small long-term investors should prefer IAU; traders or options users should consider GLD.

Question 35

What is the ideal rebalancing frequency?

Accepted Answer

Research suggests that rebalancing once or twice a year (semi-annually) is most efficient. Rebalancing too often raises transaction costs and taxes; too infrequently leaves risk unmanaged. Combining band rebalancing (trigger when weights deviate ±5–10% from targets) with calendar rebalancing (scheduled reviews) maintains the best balance.

Question 36

What are the recommended ETFs for 2025?

Accepted Answer

Top picks for 2025 include VOO (S&P 500, expense ratio 0.03%), SCHD (dividend growth, ~3.5% yield), JEPI (monthly income, 7–9% yield), and QQQ (tech growth). For stable long-term investing, a VOO + AGG combination is solid; for cash flow, try JEPI + SCHD. See the ETF recommendations page for detailed picks across 16 categories.

Question 37

Gold ETF vs Silver ETF — which is the better investment?

Accepted Answer

Gold ETFs (GLD, IAU) are safe-haven assets well-suited for portfolio defense. Silver ETFs (SLV) are tied to industrial demand, making them more volatile but with higher upside potential in bull markets. If allocating 5–10% of your portfolio to commodities, a strategy of anchoring with gold and adding a small silver position is common.

Question 38

Which ETFs can I invest in through an IRP (Individual Retirement Pension)?

Accepted Answer

Only Korea-listed ETFs are available in an IRP account. Popular choices include TIGER US S&P 500, KODEX US S&P 500 TR, and KODEX US Dividend Dow Jones, all of which track overseas indices. Risk assets (equity ETFs) may constitute up to 70% of the account; the remaining 30% must be in safe assets (bond ETFs or deposits).

Question 39

How much do I need to invest in monthly dividend ETFs to receive KRW 1,000,000/month?

Accepted Answer

Based on JEPI's annual yield of approximately 7.5%, receiving KRW 1,000,000/month (KRW 12,000,000/year) requires roughly KRW 160,000,000 before tax. After accounting for the 15% US withholding tax, approximately KRW 188,000,000 is needed. QYLD (~11% yield) requires about KRW 110,000,000, but its capital appreciation potential is more limited.

Question 40

Is it better to invest in Korea-listed overseas ETFs or directly in US ETFs?

Accepted Answer

From a tax perspective, Korea-listed overseas ETFs are overwhelmingly advantageous inside pension accounts (IRP, pension savings) due to tax credits and tax deferral. In a regular taxable account, US ETFs win on lower expense ratios and higher liquidity. That said, Korea-listed ETFs allow KRW transactions with no currency conversion fees, making them convenient for small investors.

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