Samsung Asset Management Lists KODEX KRX Climate Change Solutions ETF

[Asia Economy Reporter Minji Lee] Samsung Asset Management announced on the 29th that it will list the ‘KODEX KRX Climate Change Solution ETF,’ which invests in companies excelling in climate change response amid the transition to a low-carbon era.

Concerns about the severity of climate change have been spreading worldwide over the past few years. This is due to ongoing abnormal weather phenomena such as large-scale wildfires, floods, and droughts. Climate change not only affects weather but also causes fluctuations in agricultural product prices and natural disasters, leading to a climate crisis. The term Green Swan, referring to the potential financial crisis caused by climate change, has also emerged. Countries are implementing various eco-friendly policies aimed at reducing greenhouse gas emissions to prepare for climate change. The European Union (EU) announced the ‘Next Generation EU’ plan, focusing on eco-friendly initiatives with a budget of 750 billion euros (approximately 1,000 trillion KRW), and the United States declared a Green New Deal investment of about 2 trillion dollars (approximately 2,300 trillion KRW). South Korea also announced the Korean New Deal, planning to invest 220 trillion KRW in digital and green new deals.

The KODEX KRX Climate Change Solution ETF selects and invests in eco-friendly solution companies that adapt well to the low-carbon era. In collaboration with global index provider MSCI, it uses ESG data to invest in 20 stocks with excellent ‘Low Carbon Transition Scores’ and ‘Low Carbon Patent Scores.’ Major components include EcoPro BM at 10.5%, Samsung SDI at 8.4%, and Hanwha Solutions at 7.3%. Sector weights are 32.4% in KOSPI Electric/Electronics, 18.7% in KOSPI Chemicals, and 12.9% in KOSPI Transportation Equipment. The underlying index is the KRX Climate Change Solution Index, and the total expense ratio is 0.09% per year, one of the lowest in the industry.

Ma Seunghyun, ETF manager at Samsung Asset Management, stated, “Companies with high transition scores actively contribute to solving climate change issues whenever they provide products or services, such as electric vehicle and solar power companies. Companies with high patent scores are expected to play a key role in solving climate change problems in the future through their low-carbon-related patents.” He added, “This ETF allows for long-term investment in companies related to the carbon neutrality project, which has become a megatrend.”

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