Samsung Asset Management, KODEX Tesla Value Chain FactSet Listing
Published 08 Jun.2023 08:42(KST)
Balanced Investment in Tesla and Tesla Value Chain Companies
Investing in Key Companies within Tesla's Supply Chain such as Batteries, Semiconductors, and Auto Parts
An ETF investing in Tesla, the absolute leader with over 60% market share in the U.S. electric vehicle market, and its key suppliers has been launched. Samsung Asset Management announced that it will list the Samsung KODEX Tesla Value Chain FactSet ETF on the 8th.
The KODEX Tesla Value Chain FactSet ETF focuses about 25% of its investment on Tesla, a representative electric vehicle company, while diversifying investments into battery, semiconductor, and automotive parts companies, which are key industries in Tesla's electric vehicle value chain. In other words, it invests not only in Tesla but also across the entire supply chain related to Tesla electric vehicles.
Tesla has secured a dominant position in the electric vehicle industry through overwhelming production capacity, technology accumulated from autonomous driving mileage data, and entry into the luxury electric vehicle market by enhancing speed and driving performance. Experts predict that by 2035, electric vehicle sales will account for half of total automobile sales, with Tesla expected to lead the growth of the electric vehicle market.
Not only Tesla but also the industries comprising Tesla's value chain are growing together as future core industries. In particular, key industries within the supply chain such as batteries, semiconductors, and autonomous driving are expected to achieve an annual growth rate of about 15% until 2030. This is due to the rapid increase in demand for electric vehicle batteries, automotive semiconductors, and advanced driver-assistance systems (ADAS) alongside the rise in electric vehicle sales.
The KODEX Tesla Value Chain FactSet ETF includes approximately 25% Tesla (TESLA), about 10% in top global battery companies such as CATL and Honeywell (HONEYWELL), and leading semiconductor companies like NVIDIA and AMD. It also invests in representative autonomous driving parts companies such as APTIV and automotive semiconductor companies including NXP and STMicroelectronics.
This ETF is based on the FactSet TSLA Value Chain Index, jointly developed by Samsung Asset Management and global financial information provider FactSet. The index consists of 25 stocks selected based on comprehensive consideration of revenue, country, and other qualitative analyses among Tesla and its first- and second-tier suppliers, focusing on business relevance and market capitalization. This product is exposed to currency fluctuations and has a total expense ratio of 0.18% per annum.
Im Tae-hyuk, head of ETF management at Samsung Asset Management, said, "The KODEX Tesla Value Chain FactSet ETF is an ETF that invests heavily in Tesla, which leads innovation in the global electric vehicle market, while maintaining balanced investments in Tesla's electric vehicle value chain such as batteries, semiconductors, and advanced driver-assistance systems (ADAS)." He added, "This ETF is composed of about 70% U.S. stocks including Tesla, NVIDIA, and AMD, making it worth considering for investors who are concerned about the recent decline in Chinese electric vehicle stocks."
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