'KINDEX Eco-friendly Car Active ETF' Emerges.. One Month Return Rate 12.79%↑

[Asia Economy Reporter Hwang Junho] Domestic automobile companies have recently delivered outstanding performance, causing the related ETFs' returns to soar.

Korea Investment Trust Management announced on the 10th that the 'KINDEX Eco-friendly Automobile Value Chain Active Exchange-Traded Fund (ETF)' recorded the highest returns among ETFs investing in the domestic automobile-related industry over the past month.

According to the Korea Exchange, as of the 9th, the KINDEX Eco-friendly Automobile Value Chain Active ETF posted a 12.79% return over the last month.

This is the result of the expansion in domestic automobile companies' earnings and stock price increases translating into ETF returns. Despite sharp rises in raw material prices and semiconductor shortages, domestic automobile companies achieved high performance based on global competitiveness. Hyundai Motor and Kia achieved record-breaking second-quarter earnings through global price increases.

This ETF is popular among investors because it allows easy investment across the entire domestic automobile industry. It focuses on 20 to 30 stocks with high mid- to long-term growth potential among companies in the value chain of electric and hydrogen vehicles listed on the KOSPI and KOSDAQ. As of the 9th, it holds significant weights in Hyundai Motor, L&F, Kia, Chunbo, Ecopro BM, Samsung SDI, and LG Energy Solution.

An active ETF refers to a product managed in a way that a fund manager operates 30% of the total assets to pursue high performance.

Nam Kyung-moon, head of the equity research department at Korea Investment Trust Management, which operates this ETF, said, "We plan to maintain a high investment ratio in secondary battery-related stocks, whose profit margins improve with expansion of capacity, order momentum, and increased electric vehicle sales, while constructing a portfolio focused on secondary battery materials and equipment stocks with high stock price elasticity." He added, "The eco-friendly car theme is a mega-trend expected to continue for more than 10 years, making it highly attractive for mid- to long-term investment."

Mr. Nam is an expert who has researched and studied the automobile industry for over 16 years, including 10 years as an automobile analyst at securities firms.

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