Shinhan Asset Management's 'SOL Joseon TOP3 Plus' Surpasses 200 Billion KRW in Net Assets

Shinhan Asset Management announced on the 29th that the net assets of the ‘SOL Shipbuilding TOP3 Plus’ Exchange-Traded Fund (ETF) have surpassed 200 billion KRW. This is the result of nearly a 200 billion KRW increase in net assets over approximately five months, driven by interest from both individual and institutional investors. The net assets of the SOL Shipbuilding TOP3 Plus ETF, which stood at 16.2 billion KRW at the end of last year, have grown to 211.4 billion KRW.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, stated, “Despite concerns, steady order intake and a supplier-favored market have led to rising ship prices, and expectations for the third supercycle in the shipbuilding industry are increasing based on progressively strengthened International Maritime Organization (IMO) environmental regulations. The SOL Shipbuilding TOP3 Plus ETF, with an investment ratio of over 60% in the top three shipbuilders, and a portfolio composed solely of shipbuilders and ship equipment companies, has established itself as a leading shipbuilding ETF that attracts balanced interest from investors as the optimal product to ride the shipbuilding stock rally.”

Since the beginning of the year, the SOL Shipbuilding TOP3 Plus ETF has posted a return of approximately 11.5%, significantly outperforming the KOSPI’s 2.55% increase. Its 3-month and 6-month returns are 21.98% and 17.57%, respectively, far exceeding the KOSPI’s 3.73% and 9.11% returns.

The SOL Shipbuilding TOP3 Plus ETF is the only domestic ETF focused on shipbuilding, with over 80% of its holdings in 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. Additionally, it invests in a total of 12 stocks, including equipment companies such as Hanwha Engine, Korea Carbon, Dong Sung Fine Tec, Taekwang, and Sungkwang Bend.

Kim emphasized, “Even if the overall shipbuilding sector is positive, investors should always be mindful of the high volatility of individual stocks depending on market conditions. Utilizing ETFs that allow investment in a basket of large shipbuilding stocks to respond to the upcoming shipbuilding supercycle is also an efficient investment strategy.”