Hanwha Asset Management said on the 2nd that the "PLUS Korea Defense Industry Index" exchange-traded fund (ETF) surpassed 100 billion won in net worth 11 months after its listing on the New York Stock Exchange (NYSE).
As of the 30th of last month, the PLUS Korea Defense Industry Index (KDEF) ETF's net worth was $74.68 million. The return over the past six months was 13.99%, and since its listing in Feb. last year, the return was 121.97%.
The KDEF ETF invests in Korea's leading defense corporations such as Hanwha Aerospace, Hanwha Ocean, and Hyundai Rotem. Hanwha Asset Management participated as the index provider, and management is handled by Exchange Traded Concepts (ETC) in the United States.
Hanwha Asset Management explained that KDEF ETF is the first to surpass 100 billion won in net worth on an overseas stock market under a Korean ETF brand. The ETF also ranked No. 1 in returns (excluding inverse and leveraged products) among more than 4,300 ETFs listed on the New York stock market in the first half of last year.
Hanwha Asset Management cited ▲ the rise of K-defense ▲ the convenience of ETFs ▲ and a localization strategy as performance drivers for the KDEF ETF. As K-defense gained traction in the global defense market, U.S. investors took note of an ETF that bundled major K-defense names. ETC's marketing and distribution strategy tailored to the U.S. market also contributed to KDEF ETF's success.
Based on its experience with the KDEF ETF, Hanwha Asset Management plans to expand its business in the global ETF market and build a foundation for financial exports through collaboration with local partners.
Choi Young-jin, vice president of Hanwha Asset Management, said, "The KDEF ETF is a case of financial export in that it creates a channel for global investors to invest in Korea's leading defense corporations and attracts capital," adding, "We will strengthen global listings so investors worldwide can invest in core products."