Emerging Prospects with Korean Defense Leverage ETFs
Samsung Asset Management plans to launch a leverage ETF focusing on the defense sector this September. The product is expected to track the daily returns of its thematic ETF by two times, reflecting the rising stock prices of South Korean defense firms amid escalating global geopolitical tensions. Hanwha Asset Management is also considering launching a defense leverage ETF.
In South Korea, defense ETFs have overwhelmingly outperformed the KOSPI index, prompting asset management companies to competitively launch new products. The PLUS K Defense ETF has amassed a net asset value of 1.285 trillion KRW, topping the industry with an impressive 188.94% return over the past year, far exceeding the KOSPI’s growth. With Germany's export decline, South Korean defense firms find expanded export opportunities, with Europe, the Middle East, and Southeast Asia emerging as key markets.
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