Korea Investment Trust Management's 'KINDEX Indonesia MSCI (Synthetic) ETF' Surpasses 50 Billion KRW in Net Assets

[Asia Economy Reporter Hwang Yoon-joo] The net assets of Korea Investment Trust Management's ‘KINDEX Indonesia MSCI (Synthetic) Exchange-Traded Fund (ETF)’ have surpassed 50 billion KRW.

Korea Investment Trust Management announced on the 22nd that the net assets of the ‘KINDEX Indonesia MSCI (Synthetic) ETF’ reached 50.1 billion KRW as of the closing price on the 21st.

Indonesia is attracting global market attention as a beneficiary of rising commodity prices. Indonesia is a resource-rich country where commodities account for 41% of total exports. It is abundant in natural resources such as coal, crude oil, natural gas, and nickel, as well as agricultural products including palm oil, rubber, and coffee. Palm oil, the raw material for biodiesel, accounts for 51.7% of global production from Indonesia. Nickel, a key material for electric vehicle batteries, represents 32.7% of global production from Indonesia.

Indonesia is the world's third-largest coal producer and is also enjoying a windfall from the European Union (EU)'s ban on Russian coal imports. Although major stock markets have generally been sluggish this year due to US interest rate hikes, inflation, and the Russia-Ukraine war, Indonesia's representative stock index, the IDX Composite Index, has risen 9.81% since the beginning of the year. This is the second-highest performance among major country indices, following Argentina (10.85%).

The ‘KINDEX Indonesia MSCI (Synthetic) ETF’ is the first and only domestic ETF that directly invests in Indonesia. It is based on the ‘MSCI Indonesia Price Return Index.’ This index is composed of sectors including Financials (54.92%), Communication Services (14.94%), Materials (9.17%), Consumer Discretionary (7.52%), and Consumer Staples (6.62%). The ‘KINDEX Indonesia MSCI (Synthetic) ETF’ is a currency-exposed product, allowing investors to also benefit from investing in the Indonesian Rupiah.

Jung Sung-in, head of ETF strategy at Korea Investment Trust Management, said, "It is an emerging market suitable for long-term investment as it can directly benefit from the rapidly growing global electric vehicle market, driven by large-scale facility investments by global secondary battery manufacturers such as LG Energy Solution and CATL."

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