Performance Contrast of China's and Korea's Secondary Battery ETFs
Amid recent international economic fluctuations, China's and Korea's secondary battery-related ETFs have shown distinct performance contrasts. China's 'KODEX China Secondary Battery MSCI(Synthetic)' and 'TIGER China Electric Vehicle SOLACTIVE' ETFs rose by 30.67% and 38.81%, respectively, marking a strong performance. This success is attributed to companies like CATL and BYD, which have significantly expanded their electric vehicle battery market shares. On the other hand, Korea's 'KODEX Secondary Battery Industry' and 'TIGER Secondary Battery Theme' ETFs fell by 25.19% and 24.09% due to political uncertainties in the United States.
The lackluster performance of Korea's ETFs is analyzed to stem from adverse market reactions following the election of former President Donald Trump and his policy concerns. Meanwhile, Chinese battery manufacturers leveraged their cost advantages to expand market share, which in turn supported their stock price increases. Korean companies like LG Energy Solution and Samsung SDI possess advanced technology but face declining market shares due to higher costs, raising concerns. These competitive dynamics in the market are directly reflected in the differing ETF returns between the two nations.
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