KB Asset Management's Full-Scale Push for 'Eco-Friendly Theme ETF'

[Asia Economy Reporter Junho Hwang] KB Asset Management is expanding its lineup of eco-friendly investment products by consecutively launching environmentally themed exchange-traded funds (ETFs).

Following the launch of the KBSTAR Hydrogen Economy Theme ETF, KBSTAR Global Clean Energy S&P ETF, and KBSTAR KRX Climate Change Solution ETF, KB Asset Management further expanded its eco-friendly themed ETF lineup by releasing the 'KBSTAR KRX Climate Change Solution' ETF on the 29th.

The 'KBSTAR KRX Climate Change Solution ETF,' which tracks the KRX Climate Change Solution Index, invests in 20 stocks classified as 'Solutions' based on the low-carbon transition score (a quantified score analyzing the risks and risk management capabilities companies face during the transition to a low-carbon economy) of individual companies listed on the KOSPI and KOSDAQ markets, as well as the top 20 stocks by low-carbon patent score (a quantified score of patents related to low-carbon technologies analyzed from 96 million patents worldwide). Companies such as Ecopro BM (9.04%), Samsung SDI (8.67%), Hanwha Solutions (6.85%), LG Chem (6.47%), and Samsung Electronics (6.30%) are included.

The 'KBSTAR Global Clean Energy S&P ETF,' listed on the 21st of this month, is the first ETF in Korea to invest in clean energy. This product tracks the S&P Global Clean Energy Index. It includes global eco-friendly companies from the U.S. and Europe (Denmark, Spain), as well as domestic eco-friendly companies such as Hanwha Solutions, Doosan Fuel Cell, and CS Wind. Since its inception on the 21st, the return has been 3.04%, which is about 1.5 percentage points higher than the returns of similar types.

The 'KBSTAR Hydrogen Economy Theme ETF' is the only domestic hydrogen economy ETF swiftly launched by KB Asset Management in line with the 'Hydrogen Economy Activation.' Its net assets have surpassed 300 billion KRW. It has recorded a 9.35% return since the beginning of the year, outperforming the market return by 4.06 percentage points during the same period.

KB Asset Management plans to continuously expand its related ETF lineup in the future, ranging from segmented eco-friendly ETFs such as hydrogen-related ETFs to ETFs investing in overall clean energy companies.

Geum Jeongseop, Head of ETF Strategy at KB Asset Management, stated, "Global pension funds and asset management companies are incorporating eco-friendly criteria such as carbon emissions when evaluating investment assets," adding, "In the coming years, the eco-friendly theme will go beyond being just an investment topic and become a challenge humanity must solve, with countries and companies actively expanding the market."