Exchange to Newly List KBSTAR 2nd Battery Active ETF on the 8th

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[Asia Economy Reporter Myung-hwan Lee] Korea Exchange announced on the 6th that it plans to list KB Asset Management's 'KBSTAR Secondary Battery Active' Exchange-Traded Fund (ETF) on the KOSPI market on the 8th.

This ETF is the first active-type product in Korea that invests across the entire value chain (supply chain) of the secondary battery industry. The exchange explained that the secondary battery industry is expected to become a central axis of industrial paradigm shifts in the future and is anticipated to experience long-term growth. In particular, aligned with the global eco-friendly trend, demand for secondary batteries, a key component of electric vehicles, is expected to continuously increase.

The exchange advised that due to management costs and changes in constituent stocks, discrepancies may occur between the index performance and management performance, so an accurate understanding of the underlying index and the unique product structure is necessary. Active ETFs may have varying management performance depending on management capability, and tracking errors can be significant. In addition to total fees, other costs such as underlying index usage fees, trading costs, and audit fees may also be incurred.

To assist investor understanding, the exchange plans to provide daily asset composition details (PDF) through KOSCOM's check terminals, the exchange, and the asset management company's ETF websites.

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