Lack of Late-Stage Momentum for 'TIGER China Electric Vehicle' with 3 Trillion Won Inflows

Net Selling by Institutions and Foreigners
Key to Temporary Adjustment?

[Asia Economy Reporter Hwang Junho] The ‘TIGER China Electric Vehicle SOLACTIVE’ ETF by Mirae Asset Global Investments, which has emerged as a ‘star’ ETF with net assets exceeding 3 trillion won this month, is faltering and failing to show strong momentum in the final stretch.

According to the Korea Exchange on the 28th, the product’s base price fell from 20,000 won at the beginning of this month to 17,300 won at the previous day’s closing price. It dropped to the 17,000 won range for the first time since October 15.

This product was launched at the end of last year and has accumulated net assets exceeding 3 trillion won over the course of one year. In terms of net assets, it ranks second after KODEX200, which was the first ETF introduced domestically in 2002 and is also a major investment destination for institutional investors. KODEX200’s net assets are about 5 trillion won.

However, net assets have fallen to around 2.9 trillion won as institutional and foreign investors simultaneously engaged in net selling this month. Except for four trading days this month, both groups have sold off this ETF. In particular, among ETFs except for the leveraged inverse KODEX 20 Futures 2X (Gopbus), institutions sold this ETF the most this month. This indicates that the proportion of individual investors is significantly increasing.

The decline in the underlying index appears to have led to an increase in net selling. This product tracks the China Electric Vehicle Battery Index TR, which fell 14.84% over the past month. However, the ETF’s one-year return (based on fund evaluator Zeroin) still stands at 81.21%.

Oh Minseok, head of the Global ETF Management Team at Mirae Asset Global Investments, analyzed, “Valuation pressure due to excessive rise, emerging oversupply in secondary batteries, and temporary portfolio adjustments for year-end fund performance are influencing factors, but among them, a general correction of stocks within the Chinese secondary battery value chain centered on Ningde Shidai (CATL) has recently continued,” adding, “Despite the temporary correction, strong momentum remains.”

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