Hantoo Asset Management, ACE Indo Consumer Power Active... "Net Assets Surpass 50 Billion KRW"

Korea Investment Trust Management announced on the 26th that the net asset value of the ACE Indo Consumer Power Active Exchange Traded Fund (ETF) has surpassed 50 billion KRW.

According to the Korea Exchange, the net asset value of the ACE Indo Consumer Power Active ETF was recorded at 50.1 billion KRW as of the previous day. This ETF was listed on September 10.

The ACE Indo Consumer Power Active ETF is the first active ETF for Indian investments introduced by Korea Investment Trust Management in Asia. Its benchmark index is the 'Indxx India Super Consumption Index,' which includes Indian consumer growth industries. Major constituent stocks are selected from the consumer discretionary sectors such as home appliances, automobiles, and healthcare.

The reason the ACE Indo Consumer Power Active ETF focuses on the consumer discretionary sector is due to its "long-term growth potential." Considering Prime Minister Modi's strong economic development policies and the global supply chain restructuring, India is expected to follow a growth trajectory similar to China in the 2000s. At that time, China experienced increased demand for consumer discretionary goods centered on the rising middle class with higher incomes, which led to a rise in stock prices of consumer discretionary companies.

The selection of constituent stocks also reflects the Chinese example. Representative companies ranked high in the ACE Indo Consumer Power Active ETF include Mahindra (18.36%), Voltas (15.41%), and Apollo Hospitals (10.02%). These companies are similar to China's Great Wall Motors, Gree Electric, and Aier Eye Hospital in terms of market share and strengths.

Hyun Dong-sik, head of overseas business at Korea Investment Trust Management and the fund manager, explained, "When investing in a growing market, it is essential to selectively invest in stocks that can strongly benefit from growth. This is why active investment focused on the consumer discretionary sector, rather than India's representative index with over 30% financial sector weight, is effective."

He added, "If you invest not only in the ACE Indo Consumer Power Active ETF but also in the ACE India Market Representative BIG5 Group Active ETF, which focuses on essential infrastructure sectors for economic growth, you can evenly enjoy the benefits of India's economic growth."