KIWOOM US S&P500 Momentum ETF Sells Out on Listing Day

Kiwoom Asset Management announced on December 10 that the “KIWOOM US S&P500 Momentum ETF,” which was listed on December 9, was completely sold out, with the initial offering amount of 7.5 billion won fully subscribed. The net purchases by individual investors on the listing day totaled approximately 9.6 billion won.

The KIWOOM US S&P500 Momentum ETF employs a strategy of investing in the top 100 stocks among the S&P500 constituents that have shown the best performance over the past 12 months. It applies the “volatility-adjusted momentum” approach, which has been validated over a long period in the US market. The ETF tracks the same underlying index as the leading US momentum ETF (SPMO), the “S&P500 Momentum Index.”

As of November 30, the sector allocation of the underlying index is as follows: IT (Broadcom, Nvidia, etc.) 35%, Financials (JPMorgan Chase, Visa, etc.) 20%, Communication Services (Meta, Netflix, etc.) 15%, Industrials (General Electric, GE Vernova, etc.) 10%, Consumer Staples (Walmart, Philip Morris, etc.) 6%, and Others 16%.

The ETF automatically excludes stocks with excessive volatility or those experiencing sudden short-term declines through semi-annual rebalancing in March and September. This allows for rapid reflection of momentum during upward phases and relatively mitigates risk during correction periods.

Lee Kyungjun, Head of ETF Management at Kiwoom Asset Management, stated, “The S&P500 momentum strategy is a smart beta strategy that has been theoretically established and its performance verified over a long period in academia,” adding, “It will serve as a rational option for investors seeking more aggressive performance than the S&P500.”

He further commented, “We will continue to provide products that allow investors to invest with confidence over the long term through systematic investment strategies based on financial engineering.”

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