'Defense Powerhouse' PLUS ETF, PLUS K-Defense Leverage Newly Listed

Hanwha Asset Management announced on September 30 that it will newly list the 'PLUS K-Defense Leverage' Exchange Traded Fund (ETF).

The PLUS K-Defense Leverage ETF employs a leverage strategy that aims to deliver twice the performance of the PLUS K-Defense ETF, allowing for more aggressive investment in the growth potential of K-Defense.

Hanwha Asset Management was the first in Korea to launch a K-Defense-themed ETF, the PLUS K-Defense ETF, in January 2023. As of September 26, its return since inception is 487.55%, with a one-year return of 200.40% and a six-month return of 79.37%. Its net asset value stands at 1.2234 trillion won, making it the largest among K-Defense-themed ETFs.

K-Defense is proving itself as a new growth engine for South Korea, based on strong performance. Since 2020, South Korea's defense export contracts have surpassed 100 trillion won. This has led to an increase in earnings per share (EPS) for defense companies, alleviating concerns about overvaluation and further justifying their valuations.

This is supported by an expanding export pipeline to Europe, the Middle East, North America, and other regions worldwide. In the Middle East, Saudi Arabia and the United Arab Emirates (UAE) are approaching the time to replace their aging weapons systems, with their replacement demand estimated at approximately 18 trillion won. Efforts to enter the United States, often referred to as the "homeland of the defense industry," are also ongoing. Entry into the U.S. market is expected to be a crucial opportunity for K-Defense companies to have their technological capabilities recognized and their corporate value re-evaluated.

Choi Youngjin, Chief Marketing Officer (CMO) of Hanwha Asset Management, stated, "The confrontation between the Western bloc, led by the United States and the EU, and the anti-Western bloc, led by China and Russia, is solidifying under the so-called U.S.-China hegemony war." He added, "With the era of free trade that lasted for more than 30 years now over and with conflict and disputes becoming the 'new normal,' the defense industry will continue to be a strategic sector supporting national security and economic order."

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