Shinhan Asset Management Lists SOL KEDI Megatech Active ETF

[Asia Economy Reporter Junho Hwang] Shinhan Asset Management will list the 'SOL KEDI Megatech Active' exchange-traded fund (ETF) on the Korea Stock Exchange on the 18th.

The KEDI Megatech Index, the benchmark index for the 'SOL KEDI Megatech Active ETF,' is an evolving index that selects technology innovation companies judged by major domestic securities firms' research centers, differentiating itself from existing indices that only invested in specific themes.

The KEDI Megatech Index is the only index structured to change not only the stocks but also the industries (themes) during periodic revisions, based on analyses from securities firms' research centers that quickly sense and respond to changes in investment market trends on the ground.

Combined with Shinhan Asset Management's active strategy, the ETF plans to select megatech industries and companies that will lead South Korea's structural growth in the future to compose the final portfolio, and to respond agilely to rapidly changing market environments through monthly portfolio reviews.

The megatech industries responsible for South Korea's future, selected by the 'SOL KEDI Megatech Active ETF,' include ▲Intelligent Robots ▲Artificial Intelligence & Big Data ▲Aerospace ▲Mobility ▲Advanced Materials ▲Next-generation Energy ▲Customized Healthcare. Notably, the portfolio includes leading stocks in each megatech industry such as Hanwha Solutions (Next-generation Energy), Doosan (Intelligent Robots), Solus Advanced Materials (Advanced Materials), and Hanwha Aerospace (Aerospace).

The reason Shinhan Asset Management focuses on the domestic megatech industry is that it has recorded long-term performance exceeding the market. Over the past three years, the KOSPI index rose by only 4% (as of the end of last month), whereas the KEDI Megatech Index achieved a performance of 81% during the same period.

Kim Jeonghyun, head of the ETF Management Center at Shinhan Asset Management, said, "Although the market is currently going through a difficult period, the growth story of innovative technologies and industries that will change the world remains valid even amid short-term difficulties. Historically, various social transitions have rather provided good investment opportunities." He added, "Going forward, domestic stock investment needs to quickly respond to changes in the world by selecting industries and companies expected to have structural long-term growth, and through this, investors can expect differentiated returns from the market in the long term."