Korea Exchange Announces 4 KRX FactSet Thematic Indexes Including Mobility and Healthcare
[Asia Economy Reporter Lee Myunghwan] The Korea Exchange announced on the 21st that it plans to release four thematic indices composed of major companies in promising industry themes starting from the 25th.
The newly announced thematic indices are Mobility Innovator, Digital Healthcare, Digital Infrastructure, and Next-Generation Energy.
These thematic indices are calculated by the Exchange in collaboration with the global financial information analysis firm FactSet. Each theme is subdivided by industry sector according to FactSet's RBICS, and the indices are composed of companies within those sectors that have market size and liquidity. RBICS is a system that classifies companies into multiple detailed industries by analyzing corporate financial information as well as non-financial information such as news and disclosures.
The Exchange explained that the indices were developed to meet investment demand for promising themes expected to experience structural growth in the long term and future strategic industries, rather than focusing on short-term performance. According to the Exchange, the Digital Infrastructure index exhibits low volatility and defensive characteristics, making it suitable for pursuing long-term returns.
An Exchange official stated, "Through the development of these thematic indices, we expect to provide investment opportunities in future growth-leading industries and serve as a link for market funds to flow into these industries." He added, "We will continue to develop indices for major themes requiring structural growth, such as future strategic industries and ESG (Environmental, Social, and Governance)."
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