Outlook and Risks of Korea Value-Up Index Based ETF
Domestic asset management companies in South Korea are preparing ETFs that follow the 'Korea Value-Up Index'. However, there are concerns about their potential success due to the lack of differentiation from existing representative market indices. Approximately 10 asset management firms are planning to launch these passive ETFs in November, but they may struggle to garner market interest.
The Korea Exchange has announced that the operating profit forecasts for some components of the Korea Value-Up Index are declining. NCSoft’s operating profit is expected to decline by 41% compared to the previous year, and operating profits for Doosan Bobcat, JYP Entertainment, and HD Hyundai Infracore are also expected to decrease. This decline is likely to negatively affect the returns of ETFs based on the index. The Korea Exchange is considering changing the components within this year and plans to recompose the index with companies that meet disclosure requirements by 2026.
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Earnings Decline Forecast... 'Red Light' for Value-Up Index - Maeil Business NewspaperSome component stocks' operating profit expected to decline. NCSoft down 41% compared to the previous year. Negative impact anticipated on index-based ETFs. Possibility of stock changes within the year.
딜사이트2024 9月 30
'Value-Up Index' ETF, Success Likelihood 'Uncertain' - DealSiteAround 10 domestic asset management companies preparing for launch in November... Variables include differentiation and previous failure cases