Shinhan Asset Management "Corporate Value-Up Program... SOL AutoTOP3 Plus ETF Biggest Beneficiary"

Shinhan Asset Management announced on the 6th that amid rising expectations due to the 'Corporate Value-Up Program' highlighting low price-to-book ratio (PBR) related stocks, the 'SOL Automobile TOP3 Plus' exchange-traded fund (ETF), which invests in the automobile sector, is gaining attention.

According to Shinhan Asset Management, the recent 1-week, 1-month, and 3-month returns of the ‘SOL Automobile TOP3 Plus’ ETF are 16.32%, 6.40%, and 22.95%, respectively. During the same period, the KOSPI recorded 5.52%, -2.04%, and 11.62%, significantly lagging behind.

The ‘SOL Automobile TOP3 Plus’ ETF invests in a total of 13 stocks, including the top three automakers Kia (29.67%), Hyundai Motor (26.65%), and Hyundai Mobis (22.2%), as well as LG Electronics, HL Mando, Hyundai Wia, Hyundai AutoEver, and other automotive electronics and parts companies.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, said, “With the government policy announcement, the short-term upward trend in the automobile sector, which had been severely undervalued, became prominent. A significant amount of capital flowed into the automobile sector, which is most suitable for the low PBR investment concept following the implementation of the Corporate Value-Up Program.”

He added, “SOL Automobile TOP3 Plus is the only domestic ETF with an investment ratio exceeding 50% in Hyundai Motor and Kia. While we hold a positive outlook on the future stock price prospects of the automobile sector, this product is suitable for investors who find the increased volatility caused by short-term surges in individual stocks burdensome.”

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