SOL Joseon TOP3 Plus Short- and Long-Term Return Leader

Recent 1 Month 19.10%, 6 Months 58.36%

As major domestic shipbuilders posted second-quarter results that exceeded market expectations this year, their stock prices have continued to rise. The Shinhan Asset Management ‘SOL Shipbuilding TOP3 Plus ETF, which allows focused investment in shipbuilding stocks, is also seeing increased returns.

Shinhan Asset Management announced on the 2nd that the ‘SOL Shipbuilding TOP3 Plus ETF’ recorded 1-month and 6-month returns of 19.10% and 58.36%, respectively.

It is outperforming both short- and long-term returns compared to semiconductor and artificial intelligence (AI) ETFs, which led the domestic stock market in the first half of this year. Kim Jeong-hyun, head of the ETF business division at Shinhan Asset Management, said, “Among the five major domestic shipbuilders, four companies excluding Hanwha Ocean posted earnings surprises, and annual earnings estimates have been significantly revised upward. Domestic shipbuilding stocks have many positive factors, including rising prices of newly built vessels and earnings momentum, so the upward trend is expected to continue,” he said.

Investor demand, anticipating a prolonged shipbuilding boom, is also gradually increasing. Since the beginning of the year, individual investors have net purchased about 100 billion KRW of the SOL Shipbuilding TOP3 Plus ETF. In the past month alone, they bought more than 33 billion KRW, increasing the net asset size from 16 billion KRW to more than 15 times in half a year.

Kim explained, “As the shipbuilding boom continues, the demand for shipbuilding materials necessary for constructing ships also increases due to the trickle-down effect. The earnings of shipbuilding materials companies have greatly improved, leading to stock price rises.” He added, “Along with ship engine companies such as Hanwha Engine and STX Heavy Industries (HD Hyundai Marine Engine), which are components of the SOL Shipbuilding TOP3 Plus ETF, it is also necessary to pay attention to companies like Dongsung FineTec and Korea Carbon, which manufacture insulation materials used in storage units for LNG carriers, an area where domestic shipbuilders have strengths.”

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