Samsung Asset Management's KODEX Secondary Battery Industry Leverage... Individual Cumulative Net Purchases Exceed 200 Billion Won

Samsung Asset Management announced on the 31st that the cumulative net purchase amount by individual investors in the KODEX Secondary Battery Leverage Exchange-Traded Fund (ETF) has exceeded 200 billion KRW. As of the closing price on the 30th, it stands at 222.8 billion KRW.

Inflows from individual investors sharply increased after the stock prices of secondary battery-related companies underwent another correction at the end of April, resulting in a concentrated net purchase of 104 billion KRW within about two months.

This individual net buying trend is interpreted as individual investors placing more weight on the short-term rebound potential, driven by expectations that the recently declining secondary battery stock prices are forming a bottom.

So far, secondary battery stock prices have shown sluggish trends due to the global electric vehicle demand slowdown and continued decline in key raw material prices such as lithium. However, the industry expects that the paradigm shift in secondary batteries will occur as domestic secondary battery companies with global competitiveness turn the costs invested in mass production, such as facility investments, into technological differentiation.

Accordingly, individual investors, anticipating a recovery in earnings after the prolonged price correction has alleviated overvaluation issues, appear to be concentrating their purchases on the KODEX Secondary Battery Leverage ETF, expecting leverage effects.

KODEX Secondary Battery Industry Leverage is a leverage ETF that tracks twice the daily return of the FnGuide Secondary Battery Industry Index, diversifying investments evenly across the entire secondary battery industry value chain, including battery cells, materials, equipment, and components. It holds 24 representative stocks such as ▲LG Energy Solution, ▲LG Chem, ▲Cosmo Advanced Materials, ▲POSCO Holdings, ▲EcoPro BM, and ▲EcoPro.

Park Seong-cheol, head of the ETF Management Team 1 at Samsung Asset Management, said, “Since KODEX Secondary Battery Industry Leverage tracks twice the daily return of the secondary battery index, it can expect a more elastic effect when strong market trends appear,” adding, “For investors who anticipate the secondary battery industry will soon break away from the downward trend, KODEX Secondary Battery Industry Leverage could be a good investment tool.”