ACE POSCO Group Focus ETF Surpasses 100 Billion Won in Net Assets

Korea Investment Management announced on October 27 that the net asset value (NAV) of the ACE POSCO Group Focus Exchange-Traded Fund (ETF) has surpassed 100 billion won.

According to the Korea Exchange, as of October 24, the NAV of the ACE POSCO Group Focus ETF stood at 110.2 billion won. Launched in October 2023, the ACE POSCO Group Focus ETF is the first ETF in Korea to focus on POSCO Group companies. It is characterized by investing 95% of its assets in six listed companies within the POSCO Group. The remaining portion is allocated to leading companies by market capitalization in the same industry sectors as POSCO Group, excluding the six main POSCO Group stocks.

The current POSCO Group stocks included in the ETF are POSCO Future M, POSCO International, POSCO Holdings, POSCO DX, POSCO M-Tech, and POSCO Steelion. In addition, stocks such as LG Energy Solution, HD Hyundai Marine Solution, LX International, and Hyundai Steel are also included, each with a weighting of around 1%.

The increase in NAV is attributed to the ETF's strong performance. Over the past month, the ACE POSCO Group Focus ETF recorded a return of 33.57%, the highest among the 14 group-focused ETFs listed in Korea. Since the beginning of this year, it has achieved a return of 54.73%. The returns for the past one year and six months were 12.36% and 37.93%, respectively.

There has also been a steady inflow of funds from individual investors. Since the start of this year, 46.8 billion won has flowed into the ACE POSCO Group Focus ETF, with net purchases by individual investors reaching 25.1 billion won, accounting for approximately 54% of the total. This is the highest net purchase amount by individual investors among all group-focused ETFs listed in Korea during the same period.

Nam Kyungmoon, Head of Equity Research at Korea Investment Management, introduced the ACE POSCO Group Focus ETF as having the advantage of enabling investment in major future industries such as steel, secondary batteries, and liquefied natural gas (LNG) all at once. He added, "Although the one-year return was weak due to sluggish performance in POSCO Group's main businesses of steel and secondary batteries, the ETF has recently been rebounding thanks to positive factors."

He further stated, "The strength of the POSCO Group lies in enhancing efficiency through vertical integration," and added, "As the electric vehicle market expands, the efficiency gained from vertical integration in secondary battery materials will become even greater."

The ACE POSCO Group Focus ETF is a performance-based dividend product, and past performance does not guarantee future results. In addition, principal loss may occur depending on fund management outcomes.

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