"RISE Bio TOP10 Active ETF" Targeting KOSDAQ Policy and Technology Export Momentum

Differentiation Through an Active Strategy
Focused on Technology Export Potential

As the government's policy to revitalize the KOSDAQ market gains momentum, a bio exchange-traded fund (ETF) that simultaneously targets the inflow of policy funds and the benefits from structural changes in the global pharmaceutical industry is drawing attention.

On the 10th, KB Asset Management presented a differentiated investment strategy through the "RISE Bio TOP10 Active ETF," which focuses its investments on pure biotech companies that are considered a core growth axis of the domestic bio industry.

Pure biotech refers to bio companies that, unlike traditional pharmaceutical or medical device companies, possess their own new drug candidates and platform technologies, and whose corporate value is recognized through clinical achievements and technology exports.

Recently, the government has been expanding capital flows into innovative industries through various schemes such as the National Growth Fund, the Integrated Investment Account (IMA), and Business Development Companies (BDC). In particular, the bio industry is a representative sector with a high weighting in the KOSDAQ market capitalization, and is therefore expected to directly benefit from the inflow of policy funds.

In addition, as global big pharma companies respond to the patent cliff by shifting toward strategies focused on external technology introduction (license-in) and platform acquisition, some analysts say that the bargaining power of domestic bio companies with competitive pipelines is being structurally strengthened.

The "RISE Bio TOP10 Active ETF" employs an active strategy that focuses on high-growth biotech in response to these environmental changes. It builds a concentrated portfolio of around 20 stocks and raises the KOSDAQ weighting to about 92%, thereby maximizing exposure to "real biotech" centered on new drug platforms.

Unlike existing bio ETFs, which mix in various industries such as pharmaceuticals and beauty devices, this product selects stocks based on their potential for technology exports and the competitiveness of their platforms.

The main holdings are Ligachem Bio (12.48%), ABL Bio (11.85%), OliX (9.66%), Samchundang Pharm (6.65%), Hans Biomed (4.81%), Hanmi Pharm (4.53%), April Bio (4.49%), LIVESMED (4.30%), AbClon (4.29%), and AuroRim Therapeutics (3.84%).

Its performance has also been strong. According to fund evaluator FnGuide, its returns over the past 6 months and 1 year stand at 28.31% and 37.29%, respectively.

Yook Donghwi, Head of ETF Product Marketing at KB Asset Management, said, "The key driver for the bio sector is technology exports. If large-scale technology transfers become visible, we can expect a re-rating of valuations across the sector," adding, "The 'RISE Bio TOP10 Active ETF' goes beyond simple theme investing. It is an active product that dynamically replaces its holdings in line with market and industry changes, and will be an optimal alternative for investors interested in KOSDAQ policy momentum and changes in the strategies of global big pharma."

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