Kiwoom Asset Management said on the 12th that the net worth of its exchange-traded fund (ETF), "KIWOOM U.S. Crude Oil Energy Corporations," has surpassed 50 billion won.
According to the Korea Exchange (KRX), as of the 11th the net worth of the KIWOOM U.S. Crude Oil Energy Corporations ETF was tallied at 52.8 billion won. The net worth, which was about 7.7 billion won at the end of last year, has increased by more than 45 billion won this year alone. In particular, after the U.S. strike on Iran at the end of Feb., the net worth has grown by about 27 billion won this month.
According to FnGuide, as of the 11th, the ETF's year-to-date (YTD) gain stood at 25.81%. ▲ 1 month 3.98% ▲ 3 months 21.56% ▲ 6 months 33.43% ▲ 1 year 31.51%.
This ETF invests, by market-cap-weighted method, in more than 110 U.S. representative energy corporations from the world's No. 1 crude oil producer and largest natural gas exporter. It is designed to respond directly to energy market trends by investing with a high combined weight of 34.96% in Exxon Mobil (20.79%) and Chevron (14.17%), the world's No. 1 and No. 2 oil corporations. It also holds ConocoPhillips (5.69%), Williams (3.51%), and Schlumberger (2.84%).
Kiwoom Asset Management noted that as supply uncertainties in the Middle East expand, the role and influence of U.S. energy corporations could grow in the global energy market. In line with this, expectations for earnings centered on crude oil producers have increased, which has positively affected share prices.
This ETF is a physical ETF that invests directly in U.S. energy corporation stocks, not derivatives, and can also be invested in through retirement pension accounts. Unlike crude oil futures ETFs, physical ETFs are characterized by a structure in which not only crude prices but also energy corporation earnings and dividends are reflected simultaneously.
Oh Dong-jun, head of the ETF management team at Kiwoom Asset Management, said, "Recently, the global energy market has shown a trend of expanding volatility depending on geopolitical risks and supply variables," and added, "In such an environment, ETFs that invest directly in energy corporations can be used as an investment tool to respond to the trend in international oil prices."