Hantoo Asset Management Lists ACE US-Centered Small and Mid-Cap Manufacturing ETF... "Aiming to Benefit from Trump 2.0"

Korea Investment Trust Management announced on the 20th that it will newly list the ACE US-Centered Small and Mid-Cap Manufacturing Exchange Traded Fund (ETF) on the 21st.

The ACE US-Centered Small and Mid-Cap Manufacturing ETF is a product that invests in 40 small and mid-cap manufacturing industry stocks of US companies with more than 75% of sales generated within the United States. The underlying index is the KRW-converted NYSE FactSet US Focus Manufacturing Index (Price Return). This index is calculated and published by ICE Data Indices, LLC, the parent company of the New York Stock Exchange (NYSE).

Reflecting the proportion of sales within the US when selecting constituent stocks is a strategy considering the 'America First' policy of the Trump era. President Trump has emphasized revitalizing the manufacturing sector in his speeches and mentioned tax cuts and deregulation plans for companies producing in the US.

Among ETFs listed domestically, the ACE US-Centered Small and Mid-Cap Manufacturing ETF is the only product that includes US-centered small and mid-cap manufacturing companies. This ETF selects small and mid-cap stocks related to actual manufacturing within industrials, then finalizes the constituent stocks by considering financial indicators such as liquidity ratio and 12-month forward earnings per share (EPS). The portfolio is composed of stocks likely to lead the US manufacturing renaissance.

Currently, the top constituent stocks include Core & Main, Comfort Systems, Applied Industrial Technologies, SIA, MasTec, and BWX Technologies. Among these, Core & Main and Applied Industrial Technologies are included only in the ACE US-Centered Small and Mid-Cap Manufacturing ETF among domestically listed ETFs. The maximum investment weight per stock is about 4%, and the constituent stocks and their weights will be adjusted four times a year. Dividends are paid quarterly.

Nam Yong-su, Head of ETF Management at Korea Investment Trust Management, said, "Considering President Trump's policies, US-centered manufacturing companies that produce and consume products in the US will be the biggest beneficiaries in the Trump 2.0 era," adding, "Given that the average US sales proportion of the stocks included in the ACE US-Centered Small and Mid-Cap Manufacturing ETF is about 93%, attention should be paid to this ETF."