Shinhan Asset Management's 'SOL Joseon TOP3 Plus' Surpasses 300 Billion KRW in Net Assets

Shinhan Asset Management announced on the 14th that the net assets of the 'SOL Joseon TOP3 Plus' Exchange Traded Fund (ETF) have surpassed 300 billion KRW. As a result of concentrated interest from both individual and institutional investors, the net purchase amount by individual investors since the beginning of the year reached 131.5 billion KRW, the highest among domestic equity ETFs.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, said, “Even amid the market's historic decline last week, shipbuilding stocks based on solid earnings showed particularly strong rebounds,” adding, “Individual investors viewed the correction in shipbuilding stocks due to the market downturn as an opportunity, resulting in a net purchase of approximately 27 billion KRW of the SOL Joseon TOP3 Plus ETF in August alone.”

Despite the market's sharp adjustment, the SOL Joseon TOP3 Plus ETF has maintained a favorable return level. Its 1-month, 3-month, and year-to-date returns are 12.83%, 21.82%, and 37.69%, respectively, overwhelmingly outperforming the KOSPI’s returns of -8.35%, -4.01%, and -1.39% over the same periods. The 6-month return of 49.30% ranks first among all domestic ETFs.

Kim explained, “While industries such as AI and semiconductors are experiencing positive trends, noise arises due to a gap between expectations and actual earnings,” and added, “The shipbuilding industry is attracting attention as the top preferred investment sector among domestic industries, supported by tangible achievements such as negotiations for LNG carrier construction contracts between the three major domestic shipbuilders and Qatar Energy, and the LNG-FSU (Floating Storage Unit) conversion project contract by HD Hyundai Marine Solutions, backed by earnings surprises.”

Domestic shipbuilding stocks benefit from a continuously rising newbuilding price (the price of newly constructed vessels) and earnings momentum, along with a positive environment surrounding the industry, including the military competition between the U.S. and China, increased LNG vessel demand due to energy revitalization policies by candidate Trump in the U.S., and a favorable high exchange rate environment for exports. As investor demand, expecting a prolonged boom in shipbuilding, gradually increases, funds have poured into the SOL Joseon TOP3 Plus ETF, the only ETF focused solely on shipbuilding stocks, resulting in net assets increasing by more than 300 billion KRW this year alone.

The SOL Joseon TOP3 Plus ETF is the only domestic ETF focused on shipbuilding, with over 80% of its holdings in shipbuilders including the three major shipbuilders HD Korea Shipbuilding & Offshore Engineering, Samsung Heavy Industries, and Hanwha Ocean, as well as HD Hyundai Heavy Industries and HD Hyundai Mipo. It also invests in a total of 13 stocks, including equipment companies such as HD Hyundai Marine Solutions, Hanwha Engine, Korea Carbon, STX Heavy Industries (HD Hyundai Marine Engine), Dongsung FineTec, Taekwang, Hylock Korea, and Sejin Heavy Industries.