Samsung Asset Management's New ETFs Strong in Defense and Nuclear Sectors
Samsung Asset Management has captured attention by listing the 'KODEX K Defense TOP10 Leverage' ETF, which marked an impressive 10.3% return on its debut day. This ETF tracks the doubled performance of 10 companies with high defense revenue proportions. It has gained prominence as a major investment theme amid ongoing global geopolitical tensions and rising defense budgets. The strategic focus on defense enterprises by Samsung Asset Management allows the ETF to react quickly to temporal changes.
Following Samsung, various asset managers are joining the defense ETF market. Hanwha Asset Management, Mirae Asset Management, and Timefolio Asset Management are all launching related products, with geopolitical risk increase and defense budget upsurge acting as the main drivers for market expansion. Korea Investment Trust Management is preparing a defense ETF targeting the European market, indicating further diversification in the domestic defense ETF space.
Additionally, KB Asset Management's 'RISE Global Nuclear Power ETF' has also achieved notable success, surpassing 300 billion won in net assets. The ETF has recorded returns of 18.02% over the past three months and 77.53% over six months. This reflects robust global investment in nuclear power, fueled by growing power demand from AI, data centers, and the electric vehicle industry, with significant contributions from increased nuclear investments in the U.S., Japan, and Europe.
'PLUS Share Buyback and High Dividend' ETF Draws Strong Interest from Individual Investors
The 'PLUS Share Buyback and High Dividend' ETF by Hanwha Asset Management has garnered significant attention as it recorded the highest individual net purchases among ETFs listed this year. On its listing day, the ETF saw individual net purchases amounting to 32.6 billion KRW, a figure that substantially surpasses the average. This product invests in the top 30 companies based on a composite measure of dividend yields and share buyback ratios, reflecting growing interest among individual investors in the U.S.-style shareholder returns model.
The popularity of this ETF is further reinforced by Mist Holdings' announcement of share buyback and special dividend news. With a total trading volume reaching 50.3 billion KRW and all initial listing shares being exhausted, the robust investor interest is evident. This strategic approach is praised for assisting in cash flow management and has received positive feedback from investors. Consequently, this ETF is likely to become increasingly attractive to individual investors in the future.
Analysis of Mirae Asset's Gold ETF and Growth in Defense ETF Market
Mirae Asset's 'TIGER KRX Gold Physical ETF' has swiftly accumulated over 1,000 billion KRW in net purchases from individual investors within just 53 trading days of its listing. This ETF directly includes 99.99% pure gold listed on the KRX Gold Market and boasts a low annual expense ratio of 0.15%, making it attractive to investors. With an expected rise in gold prices, the interest in gold as a safe asset investment is increasing, further enhancing the ETF's popularity. Mirae Asset continues to offer various gold investment options and is commemorating this milestone with a special event.
Meanwhile, the domestic defense ETF market is gaining attention. The interest in defense stocks has led prominent asset managers such as Hanwha Asset Management, Mirae Asset, and Timefolio to launch key products. Samsung Asset Management's leveraged defense ETF is drawing market focus with its high returns. The growth is largely driven by geopolitical risks and increased defense budgets. Korea Investment Trust Management aims to expand this trend by introducing a defense ETF targeting the European market.
Robust Growth in Semiconductor, Chinese Market, and Active ETFs
The semiconductor sector is experiencing strong performance, with SK Hynix reaching an all-time high and Samsung Electronics hitting a 52-week record. This surge is driven by expanding investments in AI infrastructure, which has correspondingly spurred gains in related ETFs. The TIGER Semiconductor TOP10 Leverage ETF, in particular, has clocked the highest returns, underlining continued optimism for the semiconductor industry's outlook.
Amid the noticeable uptrend in the Korean stock market, policy support from the Chinese government for private enterprises is also enabling a rebound in the Chinese stock market. According to Lee Je-chung, an executive at CSOP Asset Management, the Chinese market’s prospects are hailed as a once-in-a-decade opportunity, spotlighting promising industries and AI-related investments. This sentiment bolsters the positive view of foreign investors towards these markets.
Meanwhile, active ETFs are swiftly expanding, with assets under management having surged 74% over the past eight months. The 'KODEX Eco-friendly Shipping Active' ETF, for example, has seen a remarkable 102% return since the start of the year. This growth trend is prompting calls for regulatory relaxation from investors seeking broader engagement and potential returns.
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