Korea Investment Trust Management Launches Korea's First ETF Containing POSCO Group Stocks

Korea Investment Trust Management announced on the 10th that it will launch the exchange-traded fund (ETF) "ACE POSCO Group Focus ETF," which holds POSCO Group stocks, in mid-month.

The ACE POSCO Group Focus ETF is the first POSCO Group stock ETF launched by Korea Investment Trust Management in Korea. The underlying index is the "FnGuide POSCO Group Focus Index," calculated and published by FnGuide. This index consists of POSCO Group stocks listed on the Korea Exchange as well as the top market capitalization stocks within the same industry as POSCO Group. Within the index, POSCO Group stocks account for 95%, and other stocks make up the remaining 5%.

Specifically, ▲POSCO International ▲POSCO Holdings ▲POSCO Future M each account for about 25%, totaling 75% of the index. The combined weight of ▲POSCO DX ▲POSCO M-Tech ▲POSCO Steelion is approximately 20%. The remaining 5% includes the top four market capitalization stocks in the same industry as POSCO Group stocks: ▲Hyundai Steel ▲LG Energy Solution ▲Samsung Engineering ▲LX International.

The inclusion of stocks other than POSCO Group stocks is due to the fact that there are currently six POSCO Group stocks listed domestically. If the number of POSCO Group stocks exceeds 10 in the future, stocks other than POSCO Group stocks may be excluded from the index.

The reason Korea Investment Trust Management launched the ACE POSCO Group Focus ETF is "growth potential." POSCO Group is a company that has achieved vertical integration in the steel and secondary battery materials sectors and has shown steady growth. In fact, the FnGuide POSCO Group Focus Index, which concentrates on POSCO Group stocks, recorded returns exceeding 400% over the past 3 years (470.73%) and 5 years (404.61%). During the same period, the KOSPI index recorded returns of only 9.89% (3 years) and 10.05% (5 years).

Kim Chan-young, Head of Digital ETF Marketing at Korea Investment Trust Management, said, "We have launched the ACE POSCO Group Focus ETF, which focuses on POSCO Group stocks for the first time in Korea. We hope investors will invest in POSCO Group stocks, which have long been recognized as a major industry in 'steel' and are also engaged in the new growth industry of 'secondary batteries,' through the ACE POSCO Group Focus ETF."

Meanwhile, the ACE POSCO Group Focus ETF is a performance dividend-type product, and past returns of the underlying index do not guarantee future returns of the ETF. Additionally, principal loss may occur depending on management results.