KoAct Korea Value Up Active Outperforms S&P 500 in Post-Listing Returns

Samsung Active Asset Management announced on the 20th that the KoAct Korea Value-Up Active ETF has recorded a 5.39% return since its listing. It is the highest return among the 12 Value-Up ETFs listed simultaneously.

Since its listing in November last year, in just over two months, the Korea Value-Up Index rose by 2.52% during the same period, while the KOSPI 200 fell by 0.71%.

The performance of the KoAct Korea Value-Up Active ETF exceeded the S&P 500 Index's 4.68% return by 0.72 percentage points (P) during the same period. This is significant as it demonstrates the potential success of the Korea Value-Up Index.

The KoAct Korea Value-Up Active ETF uses the Korea Value-Up Index as its benchmark and proactively invests in outstanding companies within the Value-Up Index, as well as companies expected to be included in the Value-Up Index and those related to shareholder activism. This proactive investment strategy leverages the expectation that stock prices will rise in advance as companies anticipated to be included in the index improve necessary conditions such as shareholder return rates and ROE.

Through a temporary rebalancing by the Korea Exchange in December last year, the KoAct Korea Value-Up Active ETF predicted in advance the inclusion of five companies into the index, including KB Financial Group, Hana Financial Group, and KT, and incorporated them into its portfolio early to enhance returns. It also invested in HD Hyundai Heavy Industries and Naver as potential index inclusion candidates, achieving returns of 23% and 18%, respectively.

The performance of the KoAct Korea Value-Up Active ETF highlights the advantage of active ETFs, which can actively adjust investment targets, compared to passive ETFs that must closely track their benchmark indices. It is expected to play a positive role in bringing the Value-Up program onto a full track in the domestic stock market and attracting investor interest.

As of the 20th, the KoAct Korea Value-Up Active ETF's portfolio consists of a total of 43 companies, including 36 companies included in the Korea Value-Up Index and 7 non-included companies such as Naver, HD Hyundai Heavy Industries, CJ, and T'way Air.

Nam Eun-young, Head of Operation Team 1 at Samsung Active Asset Management, said, "Companies included in the Korea Value-Up Index are attractive investment targets expected to show positive long-term stock price trends and expanded dividend payout ratios, as they lead in both excellent performance and shareholder value enhancement."

She added, "KoAct Korea Value-Up Active ETF will continue to strive to achieve performance exceeding the Korea Value-Up Index, demonstrating to investors that domestic investment products can also be held for the long term, and aims to become an essential product for the Donghak Ant movement."

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