Shinhan Asset Management's 'SOL Joseon TOP3 Plus' ETF Surpasses 100 Billion KRW in Net Assets

Shinhan Asset Management announced on the 19th that the ‘SOL Shipbuilding TOP3 Plus’ Exchange-Traded Fund (ETF) has surpassed 100 billion KRW in net assets as individual investors' funds have concentrated in it. The SOL Shipbuilding TOP3 Plus, which had 16.2 billion KRW at the end of last year, has grown nearly sevenfold in just three months, becoming the largest domestic shipbuilding-related ETF.

Compared to the secondary battery sector, which has been sluggish since the second half of last year, and the semiconductor sector, which is currently undergoing a correction phase, the superior returns of the shipbuilding sector are considered one of the factors amplifying expectations for the shipbuilding sector. Recently, following news that the U.S. Trade Representative (USTR) has launched an investigation into China’s shipbuilding companies and other related industries for ‘aggressive support,’ the daily return of the SOL Shipbuilding TOP3 Plus recorded 8.66%, ranking first among domestic ETFs.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, said, "The shipbuilding sector is attracting investment sentiment from both institutional and individual investors due to strong earnings and various order expectations for each shipbuilder," adding, "The SOL Shipbuilding TOP3 Plus ETF has seen individual investors net buying over 25 billion KRW in the past month, leading to a rapid increase in net asset size."

The SOL Shipbuilding TOP3 Plus ETF is the only domestic ETF focused on shipbuilding investment. It has over 80% exposure to shipbuilders, including the three major shipbuilders Samsung Heavy Industries, HD Korea Shipbuilding & Offshore Engineering, and Hanwha Ocean, as well as HD Hyundai Heavy Industries and Hyundai Mipo Dockyard. In addition, it invests in a total of 12 stocks, including equipment companies such as Hanwha Engine, Korea Carbon, Dongsung FineTec, Taekwang, and Sungkwang Bend.