KINDEX US Value ETF Featuring 'Warren Buffett Investment Principles' Surpasses 100 Billion KRW

[Asia Economy Reporter Junho Hwang] Korea Investment Trust Management announced on the 8th that the net assets of the 'KINDEX US WideMoat Value Stock Exchange-Traded Fund (ETF)' have surpassed 100 billion KRW.

According to the Korea Exchange, the net assets of the KINDEX US WideMoat Value Stock ETF recorded 103.4 billion KRW based on the previous day's closing price. This ETF, based on the concept of 'Economic Moat' emphasized by Warren Buffett, a master of value investing, invests in US-listed companies that possess a 'Wide Moat,' meaning sustainable competitive advantages.

A moat refers to a ditch dug around a castle to protect it from enemies. Warren Buffett likened a company's ability to maintain a competitive edge against rivals to an 'Economic Moat' and emphasized investing in companies with a 'Wide Moat.' Companies with sustainable competitive advantages and high entry barriers that competitors find difficult to overcome, thus holding a monopolistic position in the market, are considered to have a 'Wide Moat.'

This ETF tracks the Morningstar Wide Moat Focus Index. This index invests only in companies classified as having an economic moat with sustainable competitive advantages for over 20 years. As of the end of August, it invests equally weighted in 48 stocks across 10 sectors, including Berkshire Hathaway, Wells Fargo Bank, Google, Facebook, McDonald's, and Boeing.

The ‘KINDEX US WideMoat Value Stock ETF’ has shown strong long-term performance since its launch in October 2018. According to the Korea Exchange and Morningstar, the ETF's one-year return (as of the end of August) was 31.65%, outperforming the S&P 500 return of 29.21% during the same period. The two-year return was 53.52%, and the return since listing was 82.59%.

Jung Sung-in, head of the ETF Strategy Team at Korea Investment Trust Management, explained, "This ETF strategically selects only companies with excellent growth potential and valuation through rebalancing every three months, so it is attracting significant interest from pension investors who want to invest in high-quality US companies from a long-term perspective."

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