Samsung Asset, KODEX Korea Value Up ETF Listed

Samsung Asset Management announced on the 4th that it will newly list the ‘KODEX Korea Value-Up ETF’.

The KODEX Korea Value-Up ETF invests in 100 stocks that have received excellent evaluations in profitability, shareholder returns, and market valuation, actively pursuing shareholder return policies.

The underlying index, the KRX Value-Up Index, selects and includes companies that excel in both quantitative and qualitative indicators. The KRX Value-Up Index evaluates six quantitative indicators considering market representativeness (average daily market capitalization), liquidity (average daily trading value), profitability (net income), shareholder returns (dividend payout ratio, share buybacks), market valuation (price-to-book ratio), and capital efficiency (return on equity). Additionally, companies that disclose early Value-Up announcements are specially included, while non-disclosing companies are preferentially excluded, reflecting qualitative assessments. The KODEX Korea Value-Up ETF, which tracks this index, is expected to develop into an ETF that quantitatively invests in high-quality companies actively pursuing shareholder return policies and qualitatively invests in companies complying with Value-Up disclosures.

Even ETFs tracking the same index can have their returns significantly affected by bid levels and liquidity in direct ETF trading situations. Samsung Asset Management listed KODEX 200, Korea’s first ETF, in 2002 and currently manages assets worth KRW 62.8 trillion with an average daily trading value of KRW 2.3 trillion. It is the leading ETF management company in Korea, maintaining the top position for over 20 years. For domestic equity ETFs, the average daily trading value of KODEX domestic equity ETFs approaches KRW 850 billion, about four times the combined trading value of equity ETFs from other management companies, providing a robust trading volume and a smooth liquidity environment based on bid prices.

The KODEX Korea Value-Up ETF pays monthly dividends based on the last business day of each month so that investors can enjoy the dividends of Value-Up stocks. Along with dividend increases based on government incentive programs, it is highly likely to continue a steady shareholder-friendly approach. The dividend amount is also expected to expand. The total expense ratio is set at 0.0099%.

Im Tae-hyuk, Executive Director of the ETF Management Headquarters at Samsung Asset Management, said, "We expect the Korea Value-Up program to play a key role in resolving the undervaluation of the Korean stock market by encouraging efficient capital utilization and active shareholder returns by companies." He added, "We will strive to become the vanguard of Korea’s stock market Value-Up together with investors who invest in the KODEX Korea Value-Up ETF, which embodies the proven capabilities and know-how of Korea’s leading ETF management company."