Since the beginning of this year, the stock prices of defense and shipbuilding stocks have risen, with the stock prices of Hanwha Aerospace, Hanwha Ocean, and Hanwha Asset Management's exchange-traded funds (ETFs) containing group stocks and overseas defense stocks also on the rise.
Hanwha Asset Management launched an ETF focused on defense and shipbuilding stocks utilizing the group's strengths at the end of last year, attracting investments from individual investors and achieving good results at the beginning of this year. However, its market share has slipped from 6th to 7th in the past year. Compared to other management companies that increased their market share last year, there are criticisms that there is a lack of new theme products that proactively reflect market trends, limiting the expansion of market share.
According to a report from Koscom on the 8th, Hanwha Asset Management's ETFs accounted for half of the top 10 ETFs in terms of growth rate over the past month (from February 6 to March 6). The 'PLUS K Defense' ETF, which recorded the second-highest growth rate, rose by 38% during this period, followed by 'PLUS Global Defense' (35%, 3rd), 'PLUS Hanwha Group Stocks' (29%, 6th), and 'PLUS Aerospace & UAM' (23%, 9th).
In November and December of last year, Hanwha Asset Management launched 'PLUS Global Defense' and 'PLUS Hanwha Group Stocks,' benefiting from increased attention to defense stocks following the Trump election, alongside existing products. The PLUS Hanwha Group Stocks ETF covers 64% of Hanwha Aerospace, Ocean, and System, demonstrating a dominant focus on defense and shipbuilding stocks. At launch, the net worth of the two ETFs was 8.5 billion won and 15 billion won, but as of the 6th, it surged to 24 billion won and 85.3 billion won.
Domestic and international defense and shipbuilding stocks surged again after the fallout from the Trump-Zelensky summit on the 28th of last month, leading to heightened discussions on the need to bolster military capabilities in Europe. Since the 5th of this month, profit-taking sales have emerged, causing stock prices to stabilize, but when extending the period to a month, key domestic related stocks such as Hanwha Aerospace, Hyundai Rotem, Hanwha Ocean, Hanwha System, and LIG Nex1 increased by 30% to 60%.
The image of Hanwha Group, which is centered around defense and shipbuilding enterprises, is believed to have positively influenced individual investments in Hanwha Asset Management's ETFs. From the 6th of last month to the 6th of this month, individuals net purchased 42.3 billion won and 15.7 billion won of the PLUS K Defense and PLUS Hanwha Group Stocks ETFs, respectively, a significantly larger amount than the net purchase amounts of Mirae Asset Global Investments' 'TIGER Aerospace Defense' (2.3 billion won) and Shinhan Asset Management's 'SOL K Defense' (7.6 billion won), which ranked 4th and 7th in growth rate during this period.
During this period, 70 billion won of individual funds were also funneled into the 'PLUS High-Dividend Stocks' ETF, which invests in the top 30 stocks expected to yield high dividend returns domestically. This is the largest net investment amount among domestic equity ETFs. After the method for deducting foreign withholding tax on funds was revised in January, leading to disputes over double taxation, this domestic high-dividend ETF benefited as a result.
However, looking at the market share trends, it is ambiguous to say that Hanwha Asset Management has achieved outstanding results. Hanwha Asset Management's ETF market share decreased from 2.4% in February of last year to 2.1% last month. This year, the share has slightly risen from 1.9% to 2.1% over the past two months, but its overall ranking has dropped from 6th to 7th, overtaken by Kiwoom Asset Management.
For small and mid-sized asset management companies, index-based ETFs, which attract institutional money, inevitably lag behind larger firms; thus, representative theme products are needed to seize market opportunities. However, it is evaluated that Hanwha Asset Management lacks such products. Although defense has established itself as a representative ETF, the group's image is aligned with defense, making it difficult to expand into other areas.
Korea Investment Trust Management, which significantly increased its market share (5.3% to 7.9%) last year, is noted for its 'Value Chain' series that invests in a diversified array of companies forming a specific industry ecosystem. Last year alone, it launched value chain ETFs for five companies: Google, Microsoft, Apple, Nvidia, and Eli Lilly.
Shinhan Asset Management (2.4% to 3.4%) also introduced the 'AI Semiconductor and Secondary Battery Materials' ETF in April 2023 and the automotive and medical device materials, parts, and equipment series in August of the same year. By launching specialized products focused on materials and parts, it garnered enthusiasm from investors. After climbing three spots from 8th in early 2023 to 5th in February of last year, it has consistently increased its market share. On the 11th of this month, it is set to launch 'SOL Gold Covered Call Active,' the first covered call ETF for gold investments in Korea.
A source in the asset management industry noted, "For small and mid-sized asset management companies like Hanwha Asset Management, it is important to analyze market trends and launch new theme products to seize market share."