KB Asset Management’s 'RISE Bio TOP10 Active ETF' Tops Returns Among Bio Active ETFs

KB Asset Management announced on March 16 that the 'RISE Bio TOP10 Active' Exchange Traded Fund (ETF) has recorded the highest return among domestic bio active ETFs.

According to the fund evaluation firm FnGuide, as of the 13th, the recent returns for the RISE Bio TOP10 Active ETF over the past 1 month, 3 months, 6 months, and year-to-date are 9.47%, 14.18%, 37.14%, and 14.69%, respectively, making it the top performer among the five active bio ETFs listed on the Korean stock market.

The RISE Bio TOP10 Active ETF is a product that focuses its investments on pure biotech companies, which are considered the main growth drivers of Korea’s bio industry. Pure biotech refers to bio companies that, unlike traditional pharmaceutical or medical device firms, are recognized for their corporate value through clinical achievements and technology exports based on their own novel drug candidates and platform technologies.

Recently, the government has been working to expand funding for innovative industries through a variety of programs such as the National Growth Fund, Integrated Investment Account (IMA), and Business Development Company (BDC) structures. In particular, the bio industry is a leading sector with a large share of the KOSDAQ market capitalization, and is expected to directly benefit from the inflow of policy funds.

The RISE Bio TOP10 Active ETF adopts an active management strategy centered on high-growth biotech companies, reflecting these changes in the industry environment. Its portfolio is compressed to around 20 stocks, and the proportion of KOSDAQ-listed companies is increased to about 92%, thereby maximizing exposure to pure biotech companies centered on novel drug platforms.

Unlike conventional bio ETFs that include a mix of pharmaceuticals and beauty device sectors, this ETF selects stocks based on technology export potential and platform competitiveness. Its major holdings are Olix (11.54%), LegoChem Biosciences (11.09%), ABL Bio (10.15%), Samchundang Pharm (10.13%), G2GBIO (4.80%), Voronoi (4.69%), AbClon (4.64%), Algenomics (4.55%), Livesmed (4.15%), and AprilBio (4.04%).

Yook Donghwi, Head of ETF Product Marketing at KB Asset Management, stated, "The number one return of the RISE Bio TOP10 Active ETF demonstrates in the market the differentiated management strategy focusing on pure biotech companies," adding, "We will continue to invest in bio companies with strong growth potential, centering on technology exports and clinical momentum."

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