Kiwoom Asset Management said on the 7th that the KIWOOM U.S. crude oil and energy corporations exchange-traded fund (ETF) is the only domestically listed energy ETF that directly holds physical stocks, investing 22.16% in ExxonMobil and 14.81% in Chevron.
The ETF diversifies by market capitalization weighting across more than 110 U.S. crude oil and energy corporations. It is structured to capture the broad, structural tailwinds across the U.S. energy sector.
In addition, it is the only ETF in Korea that makes physical investments in U.S. energy corporation stocks rather than derivatives. Compared with synthetic products based on derivatives, physical ETFs tend to have relatively lower tracking error and a clearer structure for the attribution of distributions and dividend income.
As of the previous day, the top five holdings were: ▲ ExxonMobil (22.16%), a U.S. energy supermajor engaged in exploration and production of crude oil and natural gas, refining, and petrochemicals; ▲ Chevron (14.81%), the No. 2 U.S. supermajor and the only large U.S. energy corporation directly operating in Venezuela; ▲ ConocoPhillips (5.97%), a major independent exploration and production specialist corporation; ▲ Williams (3.78%), a U.S. natural gas-focused infrastructure corporation; and ▲ Schlumberger (3.13%), the world's largest oilfield services corporation.
According to Kiwoom Asset Management, in the wake of the recent situation in Venezuela, expectations are spreading that U.S. energy corporations will benefit over the medium to long term across production, refining, and oilfield services. Analysts say that if U.S. corporations' technology and capital are utilized in the normalization of local production and the rebuilding of infrastructure in Venezuela, it is highly likely to lead to earnings improvements and a re-rating of corporate value.
Oh Dong-jun, head of ETF management at Kiwoom Asset Management, said, "The current situation in Venezuela is being assessed as a turning point that goes beyond a short-term event, enabling U.S. energy corporations to strengthen their leadership in the global energy market once again," adding, "The KIWOOM U.S. crude oil and energy corporations ETF can be expected to benefit structurally across the U.S. energy sector in line with geopolitical shifts, while also offering stable, high dividends."