Industry's First '2nd Battery Active ETF' Launched.. Easy Excess Returns

[Asia Economy Reporter Junho Hwang] The first active exchange-traded fund (ETF) in the domestic asset management industry to invest in the secondary battery sector will be listed.

KB Asset Management announced on the 5th that it will launch the 'KBSTAR Secondary Battery Active ETF' on the 8th.

This ETF maintains a correlation of about 0.7 with its underlying index, the 'iSelect Secondary Battery Index,' while the fund manager adjusts the portfolio according to market conditions to seek excess returns with the remaining assets.

This ETF invests in domestic secondary battery companies. The domestic secondary battery ETF market has steadily grown, expanding to 3.9 trillion KRW by the end of last year.

The iSelect Secondary Battery Index, into which this ETF's assets are invested, allocates the highest proportions to Samsung SDI (9.5%) and secondary battery materials company L&F (9.5%), and also invests in LG Energy Solution (7.5%), SKC (7.5%), SK Innovation (7.0%), among others. By industry, the allocation is divided into hardware (65.3%), materials (18.3%), energy (9.3%), and semiconductors (4.5%).

Yook Dong-hwi, Head of ETF Consulting at KB Asset Management, explained, "It is difficult to select beneficiary companies to invest in new growth industries like secondary batteries," adding, "Rather than investing in specific stocks, using ETFs is the easiest method, and unlike passive ETFs, active ETFs that pursue excess returns compared to the index will be a better investment alternative."

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