'KBSTAR Fn5G Tech ETF' Surpasses 100 Billion KRW in Net Assets

[Asia Economy Reporter Junho Hwang] KB Asset Management's KBSTAR Fn5G Tech ETF surpassed 100 billion KRW in net assets on the 24th, just four months after its launch. This product invests in 5th generation mobile communications (5G). 5G is a key infrastructure driving economic and social innovation.

Not only has the net asset value of this ETF increased, but its performance has also been favorable. According to the fund rating agency FnGuide, it has recorded a 22.2% return since inception and an 11.51% return over the past three months.

This ETF is based on the 'FnGuide 5G Tech' index. The FnGuide 5G Tech index invests in core companies related to communication equipment, base station equipment, and subscriber network equipment that make up the 5G value chain, a key infrastructure of the 4th Industrial Revolution.

Looking at the index composition, Samsung Electronics, which is fostering 5G as one of the four major future industries, is included within 20%. Stocks related to 5G are selected through text mining (machine learning) analysis, focusing on those with an average daily trading volume of over 200 million KRW over 60 days and a market capitalization exceeding 50 billion KRW.

According to the latest management report, the top holdings are Samsung Electronics 21.7%, KM Double-U 14.5%, Lino Industrial 12.0%, Ace Technology 4.9%, and RFHIC 4.5%. Large telecommunications operators such as KT and SK Telecom are not included, differentiating this product from those investing in traditional telecommunications sectors.

Geum Jeongseop, head of the ETF Strategy Office at KB Asset Management, explained, "The 5G industry, one of the central pillars of the digital New Deal after COVID-19, is bound to benefit from increased investment. The KBSTAR Fn5G Tech ETF is an ETF that allows easy investment in 5G and is recommended for investors expecting growth potential in 5G-related companies."

Meanwhile, KB Asset Management's total net assets increased by 450 billion KRW within about a month after CEO Hyunseung Lee declared in early February that he would shake up the market through fee reductions and the launch of thematic ETFs. Specifically, 150 billion KRW increased in representative index products with reduced fees, and 160 billion KRW increased in thematic ETFs such as ESG social responsibility investment, hydrogen economy, and 5G Tech ETFs.

This content was produced with the assistance of AI translation services.