Korea Investment Trust Management announced on the 9th that the cumulative net purchase amount by individuals of the ‘ACE Tesla Value Chain Active ETF’ has surpassed 10 billion KRW.
This exchange-traded fund (ETF) was listed on the Korea Stock Exchange on the 16th of last month. According to the Korea Exchange, as of the 8th, the net purchase amount by individual investors of the ACE Tesla Value Chain Active ETF stands at 13.4 billion KRW. Notably, individual investors have purchased this ETF every single day during this period.
The ACE Tesla Value Chain Active ETF aims to achieve excess returns compared to its benchmark index. The benchmark index is the ‘Bloomberg EV Supporters Plus Tesla Price Return Index,’ which consists of Tesla and top companies related to electric vehicles and semiconductors. As an active ETF, it features the ability for the fund manager to quickly adjust the weighting of constituent stocks based on their judgment.
When there is a need to increase weighting, Tesla stocks and Tesla-related ETFs can be used to maximize Tesla’s weighting, and conversely, the weighting of Tesla-related stocks and ETFs can be reduced.
As of the 8th, the top holdings of the ACE Tesla Value Chain Active ETF include ▲Tesla (31.82%) ▲Direxion Daily Tesla Bull 1.5X Shares (22.97%) ▲AMD (4.39%) ▲NVIDIA (7.95%) ▲CATL (3.97%). The Tesla exposure ratio is approximately 66%.
The ETF is managed by Woo-taek Hwang, Senior Manager of the Global Quantitative Management Department at Korea Investment Trust Management. Manager Hwang currently manages the Korea Investment Global Electric Vehicle & Battery Fund, the largest domestic public electric vehicle fund.
The ACE Tesla Value Chain Active ETF can be invested in through individual pension accounts, retirement pension accounts, and brokerage-type Individual Savings Accounts (ISA). Currently, direct overseas stock investment is not possible within pension and brokerage-type ISA accounts. However, investing in overseas stocks can be effectively achieved through ETFs listed domestically. Additionally, using pension and brokerage-type ISA accounts offers various tax-saving benefits.
Manager Hwang stated, “The ACE Tesla Value Chain Active ETF currently has a Tesla exposure of over 60%, which is the highest level domestically. As the only Tesla-related active ETF in Korea, it can quickly respond to changes in the electric vehicle market and benefit from industrial growth.” He added, “If 70% of a pension account is allocated to the ACE Tesla Value Chain Active ETF, it is equivalent to investing about 30-40% directly in Tesla individual stocks within the pension account.”
Meanwhile, the ACE Tesla Value Chain Active ETF is a performance dividend-type product, and principal loss may occur depending on the management results.
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