'Thematic ETF Differentiation' KB Asset Management, 62% Increase in Assets Under Management in 2 Years

Since the launch of theme-based exchange-traded funds (ETFs) introduced as a differentiated strategy by KB Asset Management, KB Asset Management's ETF assets under management have increased by nearly 62% over two years, from 5.8 trillion KRW in 2021 to 9.4 trillion KRW this year.

On the 20th, KB Asset Management stated, "Since proactively launching theme-based ETFs in 2018, we currently hold numerous theme-based ETFs including 'Global Nuclear,' 'Battery Recycling,' 'Palladium Futures,' and 'Fn Contact Representative,' which has led to this result."

KBSTAR Global Nuclear iSelect, Korea's first domestic global nuclear ETF, invests in domestic companies (30%) and global companies (70%) related to the nuclear power value chain. By value chain, uranium companies account for the largest portion at 51.49%, followed by nuclear power generation-related companies at 46.75%. By country, Canada (42.88%) is the largest, followed by Korea (28.94%) and the United States (24.24%). According to FnGuide as of the 16th, its year-to-date return was 42%, the highest among domestic nuclear investment products.

The KBSTAR Battery Recycling iSelect product has recorded a 35.3% return this year. Unlike secondary battery theme ETFs focused on battery cells and material companies, it broadly invests in related stocks across the entire battery circular economy industry. If you are interested in palladium, an essential raw material for catalysts that purify exhaust from gasoline vehicles, you can utilize the palladium ETF product. Due to the recent global economic slowdown and decreased demand for internal combustion engine vehicles, the KBSTAR Palladium Futures Inverse (H) ETF, which bets on price declines, has recorded a 48.3% return since the beginning of the year.

The KBSTAR AI & Robot ETF, launched on the 24th of last month, invests evenly in pure artificial intelligence (AI) and robot companies with high industrial relevance. Since inception, its return has been a stable 18.26%.

Geum Jeong-seop, Head of ETF Marketing at KB Asset Management, said, "We plan to continuously supply ETFs related to industries growing as Korea's future growth engines such as semiconductors, secondary batteries, robots, AI, and the metaverse," adding, "Through this, we aim to achieve a double-digit market share within a short period."