SOL Cosmetics TOP3 Plus ETF Surpasses 30% One-Month Return

As major domestic cosmetics companies such as APR and Kolmar Korea have reported quarterly results that exceeded market expectations, optimism regarding the overall performance of the Korean cosmetics sector is rising, leading to a strong rebound in related stocks.

Shinhan Asset Management announced on the 12th that the SOL Cosmetics TOP3 Plus ETF, which invests in key companies across the domestic cosmetics value chain, rose by more than 10% over the past week. The one-month return has reached 34.24%.

Kim Junghyun, Head of ETF Business Division at Shinhan Asset Management, stated, "It is important to pay attention to the changing factors surrounding the Korean cosmetics industry, such as shifts in business structure, diversification of exports across global regions including the United States, and continuously growing overseas sales." He added, "Korean cosmetics companies are relatively less affected by changes in U.S. tariff policies due to their fundamental price competitiveness, flexible cost structures, and distribution strategies that leverage local subsidiaries. These are key opportunities for the industry."

With the global spread of K-content, demand for Korean-style makeup techniques and brands has surged, firmly establishing K-beauty as a global trend. Last year, Korea's cosmetics exports surpassed $10 billion for the first time ever. Korea also overtook France, a powerhouse in beauty, to achieve the number one import market share in the United States.

This positive momentum has continued into the first quarter of 2025. From January to March, Korean cosmetics exports reached an all-time high for the same period. Despite the issue of general tariffs, exports to the United States in April actually increased by 6% year-on-year, indicating sustained momentum.

Kim emphasized, "This year, the market should focus on industries with solid profitability and growth potential, such as shipbuilding, defense, and cosmetics. Expectations for China's economic stimulus policies, the possible lifting of the Hallyu ban, and signs of recovery in cosmetics demand are converging, suggesting further upside potential for the cosmetics sector."

The SOL Cosmetics TOP3 Plus ETF invests about 60% of its portfolio in the top three companies in each segment of the domestic cosmetics value chain: Silicontwo (distribution), Cosmax (ODM), and Amorepacific (brand). In addition, it selectively includes ODM companies such as Kolmar Korea and Cosmecca Korea, as well as brand companies with significant global sales such as VT and APR.

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