Hantoo Asset Management, ACE Shareholder Return Value Active ETF Shows 'Favorable' Returns

Korea Investment Trust Management announced on the 15th that the ACE Shareholder Return Value Active Exchange-Traded Fund (ETF) recorded the highest year-to-date return among the shareholder value sector.

According to the Korea Exchange, as of the 14th, the ACE Shareholder Return Value Active ETF posted a year-to-date return of 7.75%. This outperformed the average year-to-date return of 3.40% for shareholder value sector products classified by the Koscom ETF check terminal. The recent 6-month return was -0.16%, and the 1-year return was 14.23%.

The ACE Shareholder Return Value Active ETF is the first domestic ETF to include the keyword ‘shareholder return’ in its product name. It was listed in November 2022. This ETF invests in high-quality value stocks with solid fundamentals and long-term growth potential that have actual room for expanding shareholder returns.

The ACE Shareholder Return Value Active ETF has a strength in selecting constituent stocks. Rather than simply investing in companies with low price-to-book ratios (PBR), the fund manager personally visits and researches over 1,000 companies to select undervalued high-quality value stocks based on detailed research. As a result, this ETF has the highest proportion of small and mid-cap stocks (86%) among shareholder value sector products listed domestically. As of the previous day, it included ▲SeAH Steel Holdings (8.94%) ▲Youngone Holdings (8.02%) ▲W Games (7.83%) ▲SK Gas (5.86%) ▲Cuckoo Holdings (4.64%), among others.

The ETF also shows excellent performance compared to its benchmark (BM). It outperformed the comparative index, the ‘FnGuide All-Round Value Stock Index,’ by 11.93% and 20.45% over the recent 6 months and 1 year, respectively. Notably, over the past year, it ranks in the top 7% among all active ETFs listed domestically.

Korea Investment Trust Management holds various types of ETFs focused on enhancing shareholder value. Last month, in collaboration with Life Asset Management, it launched the ACE Life Asset Shareholder Value Active ETF, which constructs an undervalued value stock portfolio. On the 4th, it introduced the ACE Korea Value-Up ETF, which tracks the ‘Korea Value-Up Index’ calculated and announced by the Korea Exchange.

Kim Ki-baek, team leader of the Small and Mid-Cap Value Team at Korea Investment Trust Management, said, “As expectations for the full-scale shareholder return in the Korean stock market grow, finding hidden undervalued stocks has become even more important. The ACE Shareholder Return Value Active ETF is a product with the strength of selecting and investing in small and mid-cap value stocks with high-quality capital and earnings by utilizing indicators such as net assets, cash flow, dividends, and net income.”

The ACE Shareholder Return Value Active ETF is a performance dividend-type product, and past returns do not guarantee future returns. Principal loss may occur depending on management results.