KODEX K-New Renewable Energy Active, 107%p Excess Return Compared to Base Index

3-Year Post-Listing Return 102%... Basic Index Down 4.9% Over Same Period

An active ETF that outperformed its benchmark index by more than 100 percentage points (p) over a 3-year return period, which is mainly used for product performance evaluation, has emerged for the first time.

Samsung Asset Management announced that the KODEX K-Shinjaesaeng Energy Active ETF recorded a 3-year return of 102.0% since its listing, surpassing the benchmark index return of -4.9% over the same period by 106.9%p. This is the highest performance among the 201 active ETFs currently traded since the introduction of active ETFs in 2017, as well as passive ETFs.

The 3-year long-term return performance of KODEX K-Shinjaesaeng Energy Active also ranks second overall among all general ETFs (excluding leveraged ETFs), following the KODEX S&P500 Energy, which has long held the top spot with 111%. This product was listed on May 25, 2021.

The 3-year return of KODEX K-Shinjaesaeng Energy Active exceeded the benchmark index, FnGuide K-Renewable Energy Plus, by 106.9%p, with the benchmark index return being -4.9% over the same period, setting a new performance record for domestic active ETFs. Since the first listing in 2017, among the 201 active ETFs currently traded, no product has exceeded its benchmark index by more than 100%p over 3 years or other periods. The relative return compared to the benchmark index recorded 60%p since the beginning of the year, 67%p over 1 year, and 100%p over 2 years, consistently outperforming the benchmark index.

Considering that renewable energy passive ETFs have shown returns at the benchmark index level so far, the continuous record of excess returns is attracting attention as it clearly proves the differentiated competitiveness and value of active management. This product is entrusted to Samsung Active Asset Management for operation.

KODEX K-Shinjaesaeng Energy Active invests in domestic companies related to renewable energy, including solar power, wind power, hydrogen, nuclear power, as well as secondary batteries and power infrastructure. The current major holdings include Hyosung Heavy Industries (8.85%), CS Wind (7.48%), HD Hyundai Electric (7.8%), LS (7.19%), LS ELECTRIC (6.64%), Iljin Electric (6.38%), and CS Bearing (6.37%).

The product's differentiated returns were made possible by actively adjusting the portfolio composition over time based on the active management know-how of Samsung Active Asset Management, which is responsible for entrusted operation. During the secondary battery boom in the first half of 2023, Samsung Active Asset Management proactively increased the weighting of the secondary battery sector, including EcoPro, achieving excess returns. From the second half of 2022, the weighting of the power equipment sector, which had been gradually increased, was significantly expanded starting this year. Anticipating a boom in the U.S. power infrastructure industry, the weighting of the power equipment sector centered on HD Hyundai Electric has been increased since 2022. This year, the investment scope was broadened to transformer/wire stocks such as Hyosung Heavy Industries, LS ELECTRIC, Iljin Electric, Jeryong Electric, LS, LS Eco Energy, and Daehan Cable, creating differentiated performance.

The product's returns have steadily recorded 47.5% since the beginning of the year, 50.6% over 1 year, 97.6% over 2 years, and 102.0% over 3 years. While the benchmark index and passive ETFs tracking this benchmark index have stagnated by simply following market changes, KODEX K-Shinjaesaeng Energy Active achieved a 3-year return of 102%, ranking second among all general ETFs.

Samsung Asset Management emphasized that even compared to KODEX Nasdaq 100TR, the highest-returning U.S. representative index ETF listed domestically, KODEX K-Shinjaesaeng Energy Active has consistently delivered positive returns, making it a good investment option for investors planning mid- to long-term investments.

Kim Dohyung, Head of Consulting at Samsung Asset Management, said, "KODEX K-Shinjaesaeng Energy Active achieved an excess return of 107% over the index in 3 years through active management by adjusting sector weights according to market phases, which highlights the advantages of active ETFs." He added, "When selecting market, industry, or theme products for investment, distinguishing between active and passive types and carefully considering total costs and returns will lead to better performance."