Samsung Asset Management's 'KODEX China Secondary Battery MSCI ETF' Tops 1-Month Returns

Yield 25.2%... Ranked 1st Among 191 Chinese Funds

[Asia Economy Reporter Hwang Yoon-joo] Samsung Asset Management announced on the 9th that the 'KODEX China Secondary Battery MSCI (Synthetic) ETF' ranked first among 191 China-related funds with a 1-month return of 25.2%.

Launched in March, the 'KODEX China Secondary Battery MSCI (Synthetic) ETF' invests in leading Chinese companies related to secondary batteries, which are essential materials for the 4th Industrial Revolution and a core theme of eco-friendly electric vehicles. China is the world's largest market for secondary batteries, holding a 49% global market share, and is home to world-class battery companies such as CATL (Ningde Shidai), the world's number one battery manufacturer, and BYD (Biyadi), the world's second-largest battery maker and the leading company in China's electric vehicle market.

In particular, this ETF has the highest proportion of large-cap stocks among competing products in the industry, enabling focused investment in the Chinese secondary battery industry led by large-cap stocks. Given the difficulty of direct investment in Chinese stocks, this ETF offers the advantage of easy access to growing Chinese battery companies. The underlying index is the ‘MSCI China all shares IMI Select Batteries Index (PR)’, and the total expense ratio is 0.25% per annum.

The high return growth of the KODEX China Secondary Battery MSCI (Synthetic) ETF is attributed to expectations of a recovery in the Greater China stock market following the recent lifting of lockdowns in China. Currently, with the resumption of production, recovery in consumption, and the Chinese government's announcement of economic stabilization policies, the Chinese stock market has rebounded by about 5%.

Samsung Asset Management stated that among the holdings of the KODEX China Secondary Battery MSCI ETF, BYD (Biyadi) and Tianqi Lithium are the two stocks showing the highest cumulative returns since the ETF's listing, driving the ETF's return increase. ‘BYD’, which has risen about 40% since the ETF listing, holds approximately 24.98% of the KODEX ETF portfolio and is a key stock driving the return increase. ‘Tianqi Lithium’, a lithium material thematic stock with about a 6% holding, is also rebounding significantly as a beneficiary of rising lithium carbonate prices due to the accelerated resumption of the value chain production.

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