Samsung Asset Management Lists Two ETFs: K-Robot Active and K-Green Ship Active

[Asia Economy Reporter Hwang Yoon-joo] ETFs investing in domestic robot industry and eco-friendly ship companies are being launched.

Samsung Asset Management announced on the 14th that it will newly list two ETFs: 'Samsung KODEX K-Robot Active ETF' and 'Samsung KODEX K-Eco-friendly Ship Active ETF.'

The Samsung KODEX K-Robot Active ETF is an active ETF that invests in competitive domestic robot-related companies, aiming for higher capital gains compared to the KOSPI in the long term. It is the first domestic robot ETF that focuses on companies related to automation and unmanned technology.

Robots are mechanical devices that autonomously perceive external environments and recognize situations to operate independently, and are divided into industrial robots and service robots depending on their use. According to the International Federation of Robotics, approximately 435,000 industrial robots were installed as of 2021, with an expected average annual growth rate of around 6% until 2024. Professional service robots had 131,000 units installed as of 2020, growing more than 41% compared to the previous year, and personal service robots reached 19 million units, growing 6% year-over-year. In particular, the service robot market has high potential to expand into various fields such as home, medical, agriculture, and defense.

The KODEX K-Robot Active ETF selectively invests in companies with core competitive advantages and market-leading firms in the robot sector to maximize stock selection effects. Samsung Asset Management based this ETF on the 'iSelect K-Robot Theme Index,' which extracts domestic robot-related stocks using AI-based keyword filtering technology. This index includes companies across machinery, IT hardware, automobile, and semiconductor sectors such as ▲Samsung Electronics ▲Hyundai Motor ▲Doosan ▲Robotis ▲Rainbow Robotics. The total expense ratio is 0.50% per annum.

The Samsung KODEX K-Eco-friendly Ship Active ETF focuses on investing in eco-friendly ship companies. Eco-friendly ships, often called ‘electric cars on the sea,’ are low-carbon and low-pollutant emission vessels that comply with the International Maritime Organization (IMO)’s regulations for carbon neutrality. More than 2% of global CO2 emissions come from ships, and harmful substances such as sulfur and nitrogen are also emitted, prompting the IMO to strengthen environmental regulations on ships.

Recently, demand for LNG, the core fuel of eco-friendly ships, has been rapidly increasing. With the carbon intensity indicator (CII) rating system, confirmed for introduction last year, starting in 2024, existing ships will also be subject to eco-friendly engine replacement, predicting a long-term boom in the domestic eco-friendly ship industry. Moreover, Korean shipbuilding already holds an overwhelming market share in the commercialized large eco-friendly ship market, demonstrating excellent global competitiveness. According to the Ministry of Trade, Industry and Energy, the eco-friendly ship market share reached 58% in the first half of 2022. For large ships only, the share is about 70%.

This ETF follows the ‘K-Eco-friendly Ship Index,’ developed in collaboration between Samsung Asset Management and FnGuide, with major holdings including ▲Hyundai Mipo Dockyard ▲HSD Engine ▲Dongsung FineTec ▲Samsung Heavy Industries ▲Hyundai Heavy Industries. The total expense ratio is 0.50% per annum.

The two new ETFs feature low fees and high trading convenience while maximizing stock selection effects through active investment. Meanwhile, these ETFs can be invested in not only through general stock accounts but also pension accounts, making them suitable investment products for investors aiming for year-end tax benefits.