As 'Middle East Risks' Spread, 'KIWOOM US Crude Oil Energy Companies ETF' Surpasses 50 Billion Won in Net Assets

NAV Expands Sevenfold in One Year

Kiwoom Asset Management announced on March 12 that the net asset value (NAV) of the "KIWOOM US Crude Oil Energy Companies Exchange-Traded Fund (ETF)" has surpassed 50 billion won. The company interprets this surge in investor interest as being driven by heightened volatility in international oil prices, amid escalating geopolitical risks in the Middle East related to Iran, prompting greater attention to ETFs investing in US energy companies.

According to the Korea Exchange, as of the previous day's closing price, the NAV of the "KIWOOM US Crude Oil Energy Companies ETF" stood at 52.8 billion won. This is a significant increase from the 7.7 billion won level recorded at the end of last year, with the NAV rising by more than 45 billion won just this year, marking an approximate sevenfold expansion. Notably, since the end of last month—following the US and Israel's airstrikes on Iran—the NAV has grown by over 27 billion won so far this month.

The ETF has also delivered strong performance. According to FnGuide, as of the previous day, its year-to-date (YTD) return was 25.81%. The returns for specific periods were as follows: ▲3.98% over the past month, ▲21.56% over the past three months, ▲33.43% over the past six months, and ▲31.51% over the past year.

The "KIWOOM US Crude Oil Energy Companies ETF" invests in over 110 leading US energy companies, the world's largest oil producer and the largest exporter of natural gas, using a market capitalization-weighted strategy. In particular, it allocates a high combined weight of 34.96% to ExxonMobil (20.79%) and Chevron (14.17%), the world's top two oil companies, enabling direct exposure to the trends in the energy market.

Additionally, the ETF comprises companies spanning the entire energy industry value chain, from upstream to downstream, including ConocoPhillips (5.69%), Williams (3.51%), and Schlumberger (2.84%).

Furthermore, as a physical ETF that invests directly in US energy company stocks, rather than derivatives, it is eligible for investment through retirement pension accounts. Unlike oil futures ETFs, physical ETFs reflect not only oil prices but also the performance and dividends of energy companies. Notably, the average dividend yield of the index underlying this ETF is about 3.8%.

Dongjun Oh, Head of ETF Management at Kiwoom Asset Management, stated, "Recently, the global energy market has shown increased volatility due to geopolitical risks and supply-side factors. In such an environment, ETFs that invest directly in energy companies can serve as an effective tool to respond to international oil price trends."

Meanwhile, Kiwoom Asset Management is currently running a "KIWOOM US Crude Oil Energy Companies ETF" purchase certification event on its website, from the previous day through March 31.

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