Shinhan Asset Management's 'SOL Joseon TOP3 Plus' Achieves No.1 1-Month Return

Shinhan Asset Management announced on the 19th that the ‘SOL Joseon TOP3 Plus’ Exchange Traded Fund (ETF) recorded a 1-month return of 16.69%, ranking first among domestic equity ETFs. The returns for 3 months, 6 months, and year-to-date reached 32.98%, 47.60%, and 30.96%, respectively. Amid excellent performance, both individual and institutional investors continued net purchases, increasing the net assets from 16.2 billion KRW at the end of last year to 256.5 billion KRW.

In particular, despite a decline in trading volume in the stock market last week and a correction in the semiconductor sector causing the KOSPI to fall by 0.86% and the KOSDAQ by 3.39%, the SOL Joseon TOP3 Plus ETF posted a return of 8.13%, continuing its solo rally.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, said, “In the fourth quarter of last year, major domestic shipbuilders succeeded in turning a profit for the first time in over a decade, raising expectations for a supercycle in shipbuilding stocks that have been growing stronger toward the second half of the year. With rapidly improving earnings, the continuous rise in new shipbuilding prices, and the momentum from high value-added vessels and special ships such as warships that highlight the strengths of domestic shipbuilders, the shipbuilding sector is highly likely to lead the stock market in the second half of the year.”

The SOL Joseon TOP3 Plus ETF is the only domestic ETF focused on shipbuilding, with over 80% of its holdings in shipbuilders including the top three shipbuilders: HD Korea Shipbuilding & Offshore Engineering, Samsung Heavy Industries, and Hanwha Ocean, as well as HD Hyundai Heavy Industries and HD Hyundai Mipo. Additionally, it invests in a total of 13 stocks including equipment companies such as HD Hyundai Marisolution, Hanwha Engine, Korea Carbon, STX Heavy Industries, Dongsung FineTec, Taekwang, Hi-Lok Korea, and Sejin Heavy Industries.

Kim added, “Along with external growth, the earnings outlook for domestic shipbuilders, which are showing clear profitability improvements, is a factor to watch across shipbuilding stocks. The shipbuilding industry is also positively influenced by factors beyond earnings, such as the US presidential election issues, US-China trade conflicts, increased LNG exports expected if candidate Trump is elected, and high exchange rate levels.”