Samsung Asset Management Lists 'India's Samsung' KODEX India Tata Group ETF

Samsung Asset Management announced on the 8th that it will list KODEX India Tata Group ETF, the first India-themed exchange-traded fund (ETF) in Korea.

The Tata Group is India's largest conglomerate with a 150-year history, owning over 100 subsidiaries, and is known as the "Samsung of India." Among mega conglomerates, Tata Group leads India's three major growth engines: consumer goods, IT, and infrastructure industries, ranking first in market capitalization, sales, and brand value. The newly listed KODEX India Tata Group ETF selectively invests in 10 core companies within the Tata Group that lead these three major growth industries.

Representative companies include the global IT services firm Tata Consultancy, Tata Motors which owns the global premium car brands Jaguar and Land Rover, and Titan Company, a leading luxury jewelry brand in India. The ETF also invests in Tata Steel, India's largest and one of the world's top 10 steel companies; Trent, which operates the Zara and Massimo Dutti brands in India; and Tata Power, India's largest integrated energy company. These companies are composed of those with the greatest competitiveness in India's three high-growth industries driving economic growth: consumer goods, IT, and infrastructure.

India, with a domestic market of 1.4 billion people, is expected to experience mid- to long-term growth in its consumer market due to rising incomes and an expanding middle class. Additionally, India accounts for over 17% of the global IT services industry, supported by excellent IT talent and low labor costs. Recently, as a global supply chain hub, the Indian government has been promoting large-scale infrastructure investment policies, which are expected to sustain steady growth in the consumer goods, IT, and infrastructure sectors.

The KODEX India Tata Group ETF is designed for active investors seeking higher returns than the India Nifty50 index. While the Nifty50, India's representative index, consists of 37% financials, 22% consumer goods, and 16% IT, the Nifty India Corporate Group Index-Tata Group 25% Cap (hereafter Tata Group Index) tracked by this product increases the stable consumer goods sector weight to 55%. It allocates 26% and 19% to the IT and infrastructure sectors, respectively, which are expected to show differentiated growth, aiming for higher performance. As of the end of 2023, the Tata Group Index has consistently outperformed the Nifty50 and Nifty Consumer Goods indices over the past three years.

Manager Iga Hyun of Samsung Asset Management said, "India is rapidly growing amid global geopolitical changes and emerging as a new investment destination replacing China. We focused on designing the product to reflect the fact that India, a country with a population of 1.4 billion and the next largest consumer market in the world, is experiencing rapid growth based on government-led infrastructure development and manufacturing promotion, as well as the typical characteristic of emerging markets where economic growth is led by mega conglomerates."

Samsung Asset Management is holding an event called "Guess the Name of the Newly Listed ETF" on its website until the 22nd of this month. Among those who correctly guess the name of the newly listed ETF, 100 people will be selected by lottery to receive Baskin-Robbins ice cream gifticons. Detailed event information can be found on the website.