Rise of K-Defense ETFs and Global Defense Market Growth
Shinhan Asset Management has launched the 'SOL K-Defense' ETF, incorporating various areas of the South Korean defense industry in its portfolio. The ETF includes 13 stocks ranging from traditional defense companies such as Hanwha Aerospace and Korea Aerospace Industries to advanced technology companies, reflecting the increased defense expenditure due to rising international conflicts. Analysts suggest this trend may lead to a revaluation of the value of K-defense companies. Notably, defense exports have soared to $17.3 billion in 2022 and $14 billion in 2023, expanding over fivefold over the past decade, indicating rapid expansion in the global market.
Domestic defense industry ETFs have recorded an over 70% return over the past year, attracting foreign investor buying interest amidst growing geopolitical instability. This trend is likely to continue. The improved performance of major defense companies such as Hanwha Aerospace supports this growth trajectory. Moreover, with the 2024 U.S. presidential election expected to have a positive impact on American defense stocks, South Korean defense companies are also poised to strengthen their position on the global stage.
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Shinhan Asset Management 'SOL K Defense Industry ETF' Newly Listed - Metro Newspaper - Useful Information for Middle Class and Common PeopleShinhan Asset Management announced on the 3rd that the 'SOL K Defense Industry' ETF will be listed on the stock market. The explanation is that it allows investment in both the present and future of the South Korean defense industry, ranging from traditional defense companies to cutting-edge technology firms like naval vessels, unmanned robots, and satellite radars. Looking at the portfolio, it includes Hanwha Aerospace and Korea Aerospace.