KB Asset Management said on the 15th that it will launch the "RISE Donghak Ants" exchange-traded fund (ETF), which combines individual investors' supply-demand and price momentum, on the 16th of this month.
The "RISE Donghak Ants" ETF organically incorporates the influence of individual investors on the stock market into the product structure.
The product builds its portfolio by combining the top 20% of stocks by individual net purchases over the past one month with top momentum stocks over the past 12 months (excluding the most recent one month). By limiting the universe to corporations with a market capitalization of at least 1 trillion won, the strategy aims to prevent concentration in small caps while reflecting both the intensity of individual fund flows and momentum-based trend movements.
The portfolio consists of up to 20 stocks each month based on individual fund flows and momentum criteria. Among the top 20% of stocks by individual net purchases in the previous one month, it reflects the prior month and the current month target portfolios at 50% each; stocks selected at both points are included at a 10% weight, and those selected only once are included at a 5% weight.
KB Asset Management said it designed the product to capture changes in market momentum quickly while easing stock volatility.
As of on the 12th, major investment stocks include Hyundai E&C (11.8%), Samyang Foods (9.8%), PharmaResearch (9.1%), LS ELECTRIC (5.4%), HD Korea Shipbuilding & Offshore Engineering (5.3%), HYBE (5.1%), and Hanwha Aerospace (5.1%).
Yuk Dong-hwi, head of ETF product marketing at KB Asset Management, said, "With individual investors' influence bigger than ever, the 'RISE Donghak Ants ETF' is the first case to capture this change in market structure as is in an ETF," adding, "With a monthly rebalancing strategy that reflects individual flows and momentum almost in real time, it will be an efficient alternative in a fast-changing market."