KB Asset Management launches 'RISE BioTOP10 Active ETF'

KB Asset Management announced on the 23rd that it will launch the 'RISE BioTOP10 Active ETF' on the 24th of this month.

The 'RISE BioTOP10 Active ETF' is an exchange-traded fund (ETF) that invests in key companies representing the domestic bio industry. It features an active strategy based on KB Asset Management's professional research and management capabilities.

The ETF focuses on the three core sectors of the domestic bio industry: formulation platforms/new drug development, biosimilars, and contract development and manufacturing organization (CDMO). Fund manager Donghyun Koo, a pharmacist by training, will directly participate in the management, constructing the portfolio based on his specialized knowledge of the bio industry.

The underlying index is the ‘KRX Bio TOP10 Index,’ composed of 10 representative companies within the bio industry group listed on the KOSPI and KOSDAQ markets.

As of the 17th, the top holdings by weight include Celltrion (20.98%), Alteogen (20.98%), Samsung Biologics (4.09%), Hanmi Pharmaceutical (3.62%), and Yuhan Corporation (3.61%).

Notably, Celltrion and Alteogen, which have high weightings, have established themselves as leaders in the Korean bio industry through their proprietary technologies and global strategies, with continuous growth expected.

Celltrion is a company strong in the development and production of biosimilars, supplying various biosimilar products such as 'Remsima' to the global market. Recently, it established a new corporation called Celltrion Biosolutions to actively enter the CDMO business.

Alteogen possesses a core technology called the ‘SC formulation change platform,’ which converts intravenous drugs into subcutaneous injections. It has achieved significant success through technology licensing agreements with global pharmaceutical companies.

Kim Chanyoung, head of the ETF Business Division at KB Asset Management, explained, "'RISE BioTOP10 Active ETF' is a product that allows efficient investment in the rapidly growing domestic bio industry. Through an active strategy that invests ahead of market leaders, we aim to capture opportunities and generate excess returns even in volatile market conditions."