Shinhan Asset Management, 'SOL Joseon TOP3 Plus' Ranks 1st in 1-Month Performance

Shinhan Asset Management announced on the 3rd that the 'SOL Shipbuilding TOP3 Plus' exchange-traded fund (ETF), the only ETF in Korea focused exclusively on the shipbuilding industry, has shown the best performance among domestic shipbuilding sector ETFs. It ranked first in performance over the past 1 month, 3 months, and year-to-date.

With consecutive order wins in the Middle East and other regions, the continuous rise in new ship prices (the price of newly built vessels), expansion of construction volume, and the impact of rising ship prices, major domestic shipbuilders have succeeded in turning profitable since the fourth quarter of last year, sustaining expectations for an upward cycle in the domestic shipbuilding industry. As a result, a rapid influx of purchases by quick-moving individual investors anticipating a positive outlook for shipbuilding stocks caused the net assets of 'SOL Shipbuilding TOP3 Plus' to increase by more than 20 billion KRW in just two weeks. Net assets, which exceeded 30 billion KRW in mid-March, currently stand at 52.5 billion KRW as of April.

Kim Minseong, manager of the ETF management team at Shinhan Asset Management, said, "'SOL Shipbuilding TOP3 Plus,' the only domestic shipbuilding ETF that focuses on shipbuilders and shipbuilding equipment companies, is the optimal product to ride the upward cycle of the shipbuilding industry," adding, "Last month, the net purchase amount by individual investors increased more than eightfold compared to the previous month, reflecting high investor interest in the upward cycle of the domestic shipbuilding industry."

The 'SOL Shipbuilding TOP3 Plus' ETF invests more than 80% in shipbuilders, including the top three shipbuilders Samsung Heavy Industries, HD Korea Shipbuilding & Offshore Engineering, and Hanwha Ocean, as well as HD Hyundai Heavy Industries and Hyundai Mipo Dockyard. It also invests in a total of 12 stocks, including equipment companies such as Hanwha Engine, Korea Carbon, Dongsung FineTec, Taekwang, and Sungkwang Bend.

Looking at recent performance by stock, Hanwha Ocean, which recently secured orders for four LNG carriers worth 1.2 trillion KRW, rose 18.43% over the past month. The top portfolio stocks, Samsung Heavy Industries (8.35%) and HD Korea Shipbuilding & Offshore Engineering (6.97%), also showed notable performance.