KODEX K-Shipbuilding TOP10 ETF Newly Listed

Samsung Asset Management announced on October 28 that it will newly list the 'KODEX K-Shipbuilding TOP10 ETF,' which invests in beneficiaries of the Korea-US shipbuilding cooperation project MASGA.

The MASGA project, which stands for 'Make American Shipbuilding Great Again,' has recently emerged as a key card in Korea-US tariff negotiations and is expected to serve as a new growth engine for the Korean shipbuilding industry.

The ETF invests approximately 98% of its assets in stocks poised to benefit from the MASGA project. It is designed to invest in companies expected to play a major role in the MASGA project, using the MASGA keyword scoring method. In particular, it focuses about 84% of its investments on the so-called domestic shipbuilding BIG4: HD Hyundai Heavy Industries, Hanwha Ocean, HD Korea Shipbuilding & Offshore Engineering, and Samsung Heavy Industries. These four companies are expected to accelerate their entry into the US Navy's MRO (Maintenance, Repair, and Overhaul) market, which is estimated to be worth about 20 trillion won annually, as strategic partners of the US Navy.

KODEX K-Shipbuilding TOP10 is the first domestic shipbuilding sector passive ETF to include HJ Shipbuilding & Construction. HJ Shipbuilding & Construction is expected to become the third Korean shipbuilder, after Hanwha Ocean and HD Hyundai Heavy Industries, to sign the Maintenance Ship Repair Agreement (MSRA) with the US government. As a result, the company is anticipated to benefit from future US naval vessel MRO orders and the MASGA project.

Additionally, the KODEX K-Shipbuilding TOP10 ETF assigns weight to ship engine companies, often referred to as the 'heart at sea.' Recently, global shortages of ship engines have intensified due to rising demand for eco-friendly ships, replacement of aging vessels, and the prolonged supercycle in the shipbuilding industry. Domestic ship engines, which possess world-class competitiveness, are enjoying a boom thanks to improvements in average selling prices (ASP) and margins.

The supercycle in the Korean shipbuilding industry is now expected to enter full swing. With ongoing demand for replacing aging vessels and compliance with environmental regulations, large-scale LNG projects originating in North America are expected to provide the greatest benefits to Korean shipbuilders, further raising expectations for new orders. LNG carriers, considered high value-added vessels, have been credited with driving the operating profit growth of the domestic shipbuilding industry. As these high value-added ships are fully reflected in sales and operating profits, the performance growth of K-Shipbuilding is expected to continue.

Moon Hyunwook, manager at Samsung Asset Management, said, "The KODEX K-Shipbuilding TOP10 ETF is an ETF that invests in stocks expected to benefit from the supercycle of ship replacement driven by environmental regulations and aging vessels," adding, "It will be the most intuitive and focused investment vehicle for Korean shipbuilding companies that have gained new momentum from the recent MASGA project."

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