Korea Investment Management to List ACE Europe Defense TOP10 ETF on the 23rd

Korea Investment Management announced on the 18th that it will list the "ACE Europe Defense TOP10 Exchange Traded Fund (ETF)" on September 23.

The ACE Europe Defense TOP10 ETF is a product that invests in the top 10 European-listed companies with the highest proportion of revenue from the defense industry by market capitalization. The allocation ratio for each stock is determined by comprehensively considering factors such as expected sales growth rates. Each stock can be included in the portfolio up to a maximum of 20%. The underlying index is the "NYSE FactSet Europe Defense Top10 Index (Price Return)."

Korea Investment Management is focusing on the "growth potential" of European defense companies. As the global security landscape shifts, many European countries are increasing their defense budgets. According to the European Union (EU) Commission, Europe's defense spending, which stood at 355 billion dollars in 2024, is expected to rise to 871.2 billion dollars by 2029, an increase of approximately 145%. This growth rate is far higher than that of the United States (14%) or China (40%).

The ACE Europe Defense TOP10 ETF portfolio includes Rheinmetall AG (Germany), BAE Systems (United Kingdom), Thales (France), and Leonardo (Italy), among others. The ETF is expected to benefit from the "Buy European" policy, which is central to the increase in European defense spending. The Buy European policy prioritizes the purchase of weapons and defense equipment manufactured within the EU, and is considered a structural growth driver for European defense companies.

Nam Yongsoo, Head of ETF Management at Korea Investment Management, explained, "We are launching an ETF that focuses on European defense companies, taking into account structural growth driven by the Buy European policy, increased sales and operating profit based on a high order backlog, and business expansion into civilian technologies such as drones and satellites."

He added, "Due to the security paradigm shift caused by geopolitical crises, the European defense industry currently holds significant growth potential. Investors should pay close attention to the ACE Europe Defense TOP10 ETF."

The ACE Europe Defense TOP10 ETF is a performance-dividend product, and principal loss may occur depending on investment results.

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