Shinhan Asset Management announced on the 10th that the net assets of the SOL JoseonTOP3 Plus Exchange-Traded Fund (ETF) have surpassed 500 billion KRW.
The SOL JoseonTOP3 Plus ETF is the first domestic equity ETF, excluding benchmark indices, leverage, and inverse ETFs, to exceed 500 billion KRW in net assets in sectors other than semiconductors and secondary batteries.
The SOL JoseonTOP3 Plus ETF is an ETF that allows concentrated investment in the top 5 shipbuilders along with shipbuilding equipment companies. It was listed on the stock market in October 2023. The SOL JoseonTOP3 Plus ETF began to gain significant attention with the turnaround to profitability of major shipbuilders and the entry into a supercycle, recording a 60.78% return throughout 2024, ranking first among domestic equity ETFs.
The returns over the past 3 months, 6 months, and 1 year were 38.39%, 46.96%, and 85.26%, respectively, significantly outperforming the KOSPI’s increases of -2.79%, -12.05%, and -1.54%.
Amid the overall sluggishness of the domestic market, such remarkable performance stood out in terms of fund inflows from both individual and institutional investors. Since the beginning of the year, individual investors’ net purchases of the SOL JoseonTOP3 Plus ETF amounted to 192.8 billion KRW, ranking first among all ETFs excluding benchmark indices, leverage, and inverse ETFs.
Along with individual investors, institutional interest continued, with the net assets of the SOL JoseonTOP3 Plus ETF increasing approximately 30-fold from just 16.2 billion KRW at the end of 2023 to 480 billion KRW in one year. With the rise in shipbuilders’ stock prices in the new year, it has joined the ranks of large-scale ETFs exceeding 500 billion KRW.
Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, stated, “We believe that the strategy of forecasting the shipbuilding industry’s entry into a supercycle through preliminary analysis of various macro indicators and commercializing this insight has led to the inflow of funds into the SOL JoseonTOP3 Plus ETF. We are focusing our division’s capabilities on launching products that are suitable for market conditions in advance as a means for investors to grow their assets.”
The SOL Joseon TOP3 Plus ETF is an ETF that allows concentrated investment in the domestic shipbuilding industry, with over 80% weighting in the top 3 shipbuilders?HD Korea Shipbuilding & Offshore Engineering, Samsung Heavy Industries, and Hanwha Ocean?as well as HD Hyundai Mipo Dockyard and HD Hyundai Heavy Industries. It also invests in a total of 13 stocks including equipment companies such as HD Hyundai Marine Solutions, Hanwha Engine, Korea Carbon, HD Hyundai Marine Engine, Dongsung FineTec, Taekwang, Hilock Korea, and Sejin Heavy Industries.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
