'KB ESG Social Responsibility ETF' Surpasses 300 Billion KRW in Net Assets in Just Two Months

Hyunseung Lee, CEO of KB Asset Management

[Asia Economy Reporter Hwang Junho] KB Asset Management announced on the 10th that the net assets of the 'KBSTAR ESG Socially Responsible Investment ETF' have surpassed 300 billion KRW. This comes just two months after exceeding 100 billion KRW in net assets at the end of last year.

The KBSTAR ESG Socially Responsible Investment ETF tracks the KRX ESG Socially Responsible Management Index (S), which is calculated and published by the Korea Exchange based on the ESG evaluation process of the Korea Corporate Governance Service. It invests in about 100 stocks, including those listed on both the KOSPI and KOSDAQ. Notably, unlike the uniform corporate selection criteria of past Socially Responsible Investment (SRI) indices, this ETF flexibly adjusts criteria to consider ESG factors from a comprehensive perspective while also aiming for excess returns.

The performance is also excellent. The one-year return recently reached 58.8%, outperforming the KOSPI 200 index by 9.4 percentage points over the same period, and the average daily trading volume over the past month has steadily increased to over 360,000 shares.

Hong Yong-gi, Executive Director of the ETF & AI Division at KB Asset Management, said, "As global pension funds and domestic institutional investors show increasing interest in ESG-related investments, there is growing capital inflow into related products. The shift in institutional investors prioritizing ESG evaluation factors above all others when selecting investment targets can create downward price rigidity for ESG-excellent companies. The KBSTAR ESG Socially Responsible ETF can serve as a tool to respond to the recently increased market volatility."

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