Investment in Domestic Innovative Companies... 'KODEX K-Innovation Active' ETF Listed

[Asia Economy Reporter Kum Boryeong] Samsung Asset Management's 'KODEX K-Innovation Active' exchange-traded fund (ETF) has been listed.

Samsung Asset Management announced on the 24th that it has listed the 'KODEX K-Innovation Active,' an equity active ETF investing in domestic innovative growth companies. The fund is managed by Samsung Active Asset Management.

This ETF primarily invests 70% in the constituent stocks of the 'FnGuide K-Innovation Index,' a group of innovative growth companies selected by FnGuide. The remaining 30% is invested in the best stocks selected by the Samsung Active Asset Management Research Center. Initially, about 45 stocks were selected, then analyst non-recommended stocks were removed and weight-expanded stocks were chosen, resulting in a portfolio of around 30 to 40 stocks including Samsung Electronics and SK Hynix.

The core strategy for stock selection is to generate additional alpha by investing in companies expected to experience explosive growth over the next five years, companies with strengthened market dominance or growth intensity, companies with excellent and trustworthy management, companies with active R&D investment ensuring long-term growth and survival through high research and development expenditures, and companies undervalued relative to intrinsic value allowing reasonable valuation.

Kim Seungwook, Head of ETF Management at Samsung Asset Management, said, "As the first product listed in collaboration with our subsidiary Samsung Active Asset Management, we hope this product will establish itself as a foothold for full-scale entry into the active ETF market in the future."

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