Kiwoom Asset Management said on the 5th that the "KIWOOM U.S. S&P 500 Momentum ETF" will be newly listed on the Korea Exchange on the 9th.
The "KIWOOM U.S. S&P 500 Momentum ETF" is a momentum ETF that selects and includes the top 100 stocks by 12-month returns among S&P 500 components. It tracks the same benchmark index as SPMO, a representative U.S. momentum strategy ETF, the "S&P 500 Momentum Index."
Based on a momentum score (the value of 12-month return divided by volatility), it selects the 100 stocks showing the strongest trends and applies a momentum-weighted method that assigns larger weights as momentum increases. Through this structure, the weights of stocks with recent strong performance are naturally expanded, and it can be expected to outperform the S&P 500 over the long term.
In particular, considering the characteristics of the U.S. market where leading sectors are continuously replaced depending on market conditions and economic cycles, it is structured to automatically shift weights to the sectors showing the strongest trends without sector constraints.
In addition, by using "volatility-adjusted momentum" to automatically exclude excessively volatile stocks or plunging stocks, it is expected to provide a defensive effect by recording a lower maximum drawdown (MDD) than the S&P 500 in down markets.
Lee Kyung-jun, head of ETF management at Kiwoom Asset Management, said, "The S&P 500 momentum strategy reflects market changes the fastest, getting ahead of leading stocks in rising markets and naturally reducing high-risk stocks in corrective phases," adding, "With a simple, intuitive rule-based approach, it focuses investments only on 'winners' within the S&P 500, which is a major strength."