Focus on US Inflation Reduction Act Passage... 'KBSTAR Global Clean Energy S&P ETF'

[Asia Economy Reporter Hwang Yoon-joo] KB Asset Management's ‘KBSTAR Global Clean Energy S&P’ ETF has recently attracted market attention by recording a 1-month return of 18.04%.

The KBSTAR Global Clean Energy S&P ETF is the first clean energy ETF listed domestically in October last year. It diversifies investments in global core companies engaged in the clean energy industry, including renewable energy such as solar, wind, hydro, and hydrogen, green mobility such as hydrogen & fuel cells, and green industries such as carbon capture and utilization.

Following the Russia-Ukraine war, the importance of energy security has been highlighted, and clean energy-related stocks have continued positive momentum. The U.S. Inflation Reduction Act is expected to serve as another policy catalyst.

The Inflation Reduction Act, which focuses on addressing climate change and expanding healthcare coverage, aims to reduce carbon emissions by 40% by 2030 and plans to comprehensively support eco-friendly industries such as solar, wind, and hydrogen.

The KBSTAR Global Clean Energy S&P ETF tracks the same underlying index (S&P Global Clean Energy Index) as the world’s largest clean energy ETF, ‘iShares Global Clean Energy’ (ticker: ICLN).

Geum Jeong-seop, Head of ETF Marketing Division at KB Asset Management, said, "Due to the high volatility characteristic of the clean energy theme, long-term and installment investments may be more advantageous than short-term or lump-sum investments." He added, "Unlike ICLN, which cannot be purchased through tax-advantaged accounts such as pension savings accounts, retirement pension accounts, and brokerage-type ISA accounts, KBSTAR Global Clean Energy S&P, which tracks the same underlying index, can be purchased through these tax-advantaged accounts, offering the benefit of tax savings."

Meanwhile, KB Asset Management operates numerous domestic and international eco-friendly theme ETFs, including KBSTAR Global Hydrogen Economy Indxx and KBSTAR Fn Hydrogen Economy Theme, in addition to KBSTAR Global Clean Energy S&P.