Korea Investment Management ACE KPOP Focus ETF Surpasses 20 Billion KRW in Net Individual Purchases Since Beginning of Year

Korea Investment Management announced on May 23 that the net purchases by individual investors in the ACE KPOP Focus Exchange Traded Fund (ETF) have surpassed 20 billion KRW since the beginning of the year.

According to the Korea Exchange, as of May 22 this year, the net purchases by individual investors in the ACE KPOP Focus ETF amounted to 20.2 billion KRW. Thanks to this inflow of individual investment, the net asset value has also increased. After surpassing 50 billion KRW in early February this year, the net asset value has grown to 121.5 billion KRW in just three months.

This is attributed to recent signals suggesting the lifting of China's ban on Korean content (Hallyu), as well as heightened expectations for earnings. In addition, the KPOP industry is drawing market attention as it is considered a "safe zone" from US-imposed tariff risks.

The ACE KPOP Focus ETF is a product that invests in domestic companies with market dominance within the KPOP entertainment industry. It tracks the 'iSelect K-POP Focus Index' as its benchmark and is characterized by concentrating approximately 95% of its investments in the top four leading companies in Korea's entertainment industry.

Specifically, the portfolio includes SM Entertainment (27.78%), HYBE (25.04%), JYP Entertainment (22.35%), and YG Entertainment (20.29%). Additionally, it invests in DearU (0.93%), a fan communication platform considered a high value-added segment, as well as KT Genie Music (0.69%), which provides digital content and online music streaming services.

The fund has delivered outstanding performance. The ACE KPOP Focus ETF recorded a six-month return of 37.73%. This outperforms the average return of 2.26% for 653 equity-type ETFs over the same period. Its one-year return stands at 51.83%.

Nam Kyungmoon, head of equity research at Korea Investment Management, stated, "As global demand for KPOP continues to expand, major intellectual property (IP) comebacks and concerts are scheduled through the first half of next year, making the outlook positive." He added, "The ACE KPOP Focus ETF is the only ETF listed in Korea that invests exclusively in companies related to the KPOP industry, making it suitable for those who wish to invest in the growth potential of the KPOP sector."

The ACE KPOP Focus ETF is a performance-based distribution product, and past performance does not guarantee future results. Investors should also be aware that principal loss may occur depending on investment outcomes.