NH Amundi, HANARO Shareholder Value Growth Korea Active ETF Listed

NH-Amundi Asset Management announced that it will list the HANARO Shareholder Value Growth Korea Active Exchange-Traded Fund (ETF) on the 11th. The HANARO Shareholder Value Growth Korea Active ETF is an active ETF that invests in undervalued domestic stocks.

This is NH-Amundi Asset Management's first domestic equity active ETF. It is a product aligned with the changing financial market trend where the importance of increasing shareholder value is growing. The investment targets are premium companies that are undervalued or companies that are currently improving or planning to improve shareholder value through dividends, share buybacks, etc. It focuses intensively on high-quality companies with a high potential for revaluation by overcoming the Korea discount.

To select suitable stocks, the HANARO Shareholder Value Growth Korea Active ETF constructs its portfolio by setting inclusion criteria such as ▲companies with a high ratio of net liquid assets relative to market capitalization ▲companies in the bottom 30% of PBR or companies with a PBR below 1 ▲companies with a high shareholder return ratio.

It selects and invests in about 40 undervalued value stocks across industries such as automobiles, steel, finance, and food and beverages. Expected stocks include SK Square, Hyundai Motor, POSCO, Hana Financial Group, and KT&G. During management, NH Investment & Securities' iSelect Shareholder Value Growth Index is used as a benchmark to pursue long-term excess returns.

Kim Hyun-bin, Head of ETF Investment at NH-Amundi Asset Management, stated, “We plan to show flexible management by referring to various indicators such as corporate value, liquidity, and valuation,” and emphasized, “If you want to invest in Korea’s representative undervalued value stocks, the HANARO Shareholder Value Growth Korea Active ETF will be an effective investment tool.”