Korea Investment Management will newly list the ACE K Export Core TOP 10 Industries Active exchange-traded fund (ETF) on the 31st.
The ACE K Export Core TOP 10 Industries Active ETF is a product that invests in representative corporations within 10 domestic industries with export competitiveness.
The comparison index is the "iSelect K Export Core Industries" index calculated and published by NH Investment & Securities. This product is an active fund in which the portfolio manager directly decides the constituents and their weights, and portfolio adjustments are made from time to time at the manager's discretion.
The ACE K Export Core TOP 10 Industries Active ETF constituents are selected within 10 industries.
The relevant fields are ▲ semiconductors, ▲ semiconductor materials, parts, and equipment, ▲ shipbuilding, ▲ defense, ▲ nuclear power, ▲ electric power equipment, ▲ K-food, ▲ K-content, ▲ cosmetics, ▲ bio.
The industry groups may also change later at the portfolio manager's discretion.
The total number of holdings is maintained at the 12–15 range. KIM said that because differences appear among stocks even within an industry group, it analyzed that it can seek to outperform the comparison index with a lineup centered on representative corporations.
It also ensured that the portfolio is not concentrated in a particular industry by including at least one stock from each industry group. To that end, it set a maximum weight of 40% for a single industry group and 10% per stock.
Han Jae-hoon, head of ESG Management at Korea Investment Management, said, "Investing in domestic corporations with export competitiveness is advantageous in a high exchange-rate era," adding, "While most export corporations receive revenue in dollars, their expense is paid in won, so alongside the sales growth from solid overseas demand, profitability improvement can also be expected."
The ACE K Export Core TOP 10 Industries Active ETF is a performance dividend-type product, and losses of principal may occur depending on management results.