Exchange to List 8 Active ETFs Including Sector Themes and ESG on the 30th

Samsung Asset Management, NH-Amundi Asset Management, and Hanwha Asset Management Launch Related ETFs

(Provided by Korea Exchange)

[Asia Economy Reporter Gong Byung-sun] The Korea Exchange announced on the 28th that it plans to list six sector-themed Exchange Traded Funds (ETFs) launched by three asset management companies, along with two ESG (Environmental, Social, and Governance) active ETFs, on the KOSPI market on the 30th.

The newly listed ETFs include Samsung Asset Management's ‘KODEX Fn System Semiconductor’, ‘KODEX Fn Webtoon & Drama’, and ‘KODEX Fn Top10 Equal Weight’, NH-Amundi Asset Management's ‘HANARO Fn K-Semiconductor’, ‘HANARO Fn K-Game’, and ‘HANARO Fn K-POP & Media’, as well as Hanwha Asset Management's ‘ARIRANG ESG Value Active’ and ‘ARIRANG ESG Growth Active’.

Samsung Asset Management's KODEX sector-themed ETFs are regarded as thematic ETFs that broaden investors' choices and meet diverse demands. They have also developed products that focus on the system semiconductor sub-industry, which is expected to grow alongside market expansion and related companies, as well as the webtoon and drama industries. To differentiate from existing products, they offer an investment alternative that invests in the top market capitalization stocks using an equal-weight method composed of the top 5 stocks by market cap and 5 stocks with high dividend yields.

NH-Amundi Asset Management introduced HANARO sector-themed ETFs focusing on the semiconductor, game, and media industries, which are expected to experience high growth after COVID-19. For all three ETFs, in addition to industry classification, industry-related sales revenue will also be considered when selecting constituent stocks.

(Provided by Korea Exchange)

Hanwha Asset Management's ARIRANG ESG Active ETFs differ from other ESG ETFs that determine investment stocks and weights based on ESG scores by considering both non-financial ESG factors and financial indicators related to value and growth. Active ETFs refer to ETFs that adjust investment weights and stocks to achieve excess returns compared to a benchmark index.

The Exchange explained, “Due to the nature of active ETFs, performance can vary significantly depending on the asset manager's capabilities,” and added, “Compared to passive ETFs that simply track a benchmark index, active ETFs apply relaxed investment criteria, which may result in a relatively lower correlation coefficient with the benchmark index.”

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