Kiwoom Asset Management Launches 'KOSEF Kosdaq Global ETF' "Focused Investment in Blue-Chip Stocks"

Kiwoom Asset Management will list the ‘KOSEF KOSDAQ Global’ exchange-traded fund (ETF), which focuses on investing in high-quality KOSDAQ stocks, on the Korea Exchange on the 24th.

According to Kiwoom Asset Management on the 20th, the KOSEF KOSDAQ Global ETF launching on the 24th is a product that diversifies investments in leading KOSDAQ stocks playing a pivotal role in Korea’s representative growth industries such as secondary batteries, semiconductors, biotechnology, and entertainment. Based on the underlying index as of the end of last month, the investment weights are high in EcoPro BM (20.67%), Celltrion Healthcare (11.66%), L&F (7.87%), JYP Ent. (5.43%), and POSCO DX (4.94%). It also includes Alteogen, Pearl Abyss, Lino Industrial, EO Technics, and PNT.

This ETF tracks the ‘KOSDAQ Global Index’ calculated by the Korea Exchange. The Korea Exchange has been designating companies with excellent financial performance, market evaluation, and governance among KOSDAQ-listed stocks as ‘KOSDAQ Global Segment Companies’ since November last year. As of the end of last month, 50 stocks are included in the KOSDAQ Global Segment. This approach references the example of the U.S. Nasdaq market, which enhances the overall value of the Nasdaq market and creates a trickle-down effect for all listed companies through its ‘Global Select Segment’ that separately manages only large-cap blue-chip companies.

Investors seeking higher performance compared to KOSPI while investing broadly in the domestic stock market often used ETFs tracking the KOSDAQ Index or KOSDAQ 150 Index for asset allocation purposes. However, the KOSDAQ Index made it difficult to concentrate investments on the core large-cap blue-chip stocks driving index performance. This is because the index consists of over 1,500 companies, and the KOSDAQ 150 Index comprises around 150 companies. Some stocks with unverified corporate governance were also frequently exposed to issues such as embezzlement and breach of trust.

By using the KOSEF KOSDAQ Global ETF, investors can effectively invest only in core stocks that possess both soundness and growth potential among KOSDAQ-listed companies. The total expense ratio is 0.07% per year, the lowest among domestic KOSDAQ Global ETF products. Jung Sung-in, head of the ETF Marketing Division at Kiwoom Asset Management, said, “The KOSEF KOSDAQ Global ETF comprehensively covers major themes that will lead the market in the mid to long term and focuses intensively on high-quality growth stocks that are competitive not only domestically but also globally. It will be useful for investors looking for a simple alternative to invest in domestic blue-chip companies with a single product.”

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