Samsung Active Asset Management to List New 'KoAct KOSPI Active' ETF

Seeking Excess Returns Over KOSPI
Maintaining a High Weight in Semiconductors
Focusing on Shipbuilding, Machinery, Defense, and More
"KOSPI Still Undervalued"

Samsung Active Asset Management will list the 'KoAct KOSPI Active' Exchange Traded Fund (ETF) on May 19.

According to Samsung Active Asset Management on May 18, the KoAct KOSPI Active is an active product launched to pursue excess returns over the KOSPI index in a so-called 'K-shaped stock market' environment, where the gap in returns between leading and lagging sectors widens even as the KOSPI index reaches record highs.

This product maintains a high weighting in semiconductors, which drive KOSPI earnings growth. At the same time, it focuses on sectors such as shipbuilding, machinery, defense, energy, and securities, which are likely to emerge as leading sectors based on changes in earnings forecasts. Thematically, the fund also aims to actively discover stocks related to the restructuring of national energy supply chains, diversification of energy sources, and strengthening of national defense capabilities in the wake of the Middle East war.

KOSPI fundamentals are gradually improving, driven by earnings growth in industries such as AI semiconductors and defense that lead the global market. Despite hitting all-time highs, KOSPI is still considered undervalued compared to major global markets. As of the end of last month, KOSPI's 12-month forward price-to-earnings ratio (PER) stood at 7.1, and given that KOSPI has historically traded around a 12-month forward PER of 10, analysts believe there is ample room for further upside.

Furthermore, as of the end of last month, the valuation appeal of KOSPI becomes more pronounced when compared with other markets: Taiwan, with high IT dependence and benefiting from AI, posted a 12-month forward PER of 19, Japan 16, Shanghai 13, and Hong Kong 10.

Jung Daeho, Team Leader of Investment Division 2 at Samsung Active Asset Management, said, "Even though KOSPI is reaching record highs, in a 'K-shaped stock market' where the index rises but individual accounts remain unchanged, the key to survival is ultimately the ability to select the right stocks. Our nine corporate analysts and veteran fund managers will work together to discover high-quality stocks and deliver excess returns over the KOSPI."

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