KIWOOM Germany DAX ETF Achieves 20% Year-to-Date Return

KIWOOM Asset Management announced on May 28 that the net asset value (AUM) of the 'KIWOOM Germany DAX ETF', the only domestic exchange-traded fund (ETF) that invests exclusively in Germany as a single country, has surpassed 30 billion KRW.

According to the Korea Exchange, the net asset value of the KIWOOM Germany DAX ETF increased by approximately 350%, rising from 6.7 billion KRW at the end of last year to 30 billion KRW as of May 27.

The fund recorded a return of 31.18% over the past six months. Its year-to-date return reached 20.48%. In comparison, the S&P 500, the leading U.S. index, has risen only 0.68% this year, highlighting the relative strength of the German stock market.

The KIWOOM Germany DAX ETF tracks the DAX index, which is composed of the top 40 companies by market capitalization listed on the Frankfurt Stock Exchange in Germany. Investors can achieve diversified exposure to leading global German companies such as SAP, Siemens, Rheinmetall, and Allianz. The ETF features a balanced portfolio that evenly reflects a variety of sectors, including industrials, finance, and information technology, without concentration in any particular industry.

The German government has finalized an infrastructure investment budget of 500 billion euros and is significantly increasing its defense spending, thereby launching an expansionary fiscal policy. Major European defense stocks such as Rheinmetall and Airbus, as well as leaders in AI infrastructure and software like SAP and Siemens, are attracting attention. These factors are analyzed as key drivers behind the overall rise of the German stock market.

The KIWOOM Germany DAX ETF is structured as a currency-unhedged product, providing additional profit opportunities when the euro strengthens. The total expense ratio is 0.25% per year.

A representative from KIWOOM Asset Management stated, "Recently, the German stock market has maintained a stable trend, supported by growth expectations centered on AI and defense, along with the ongoing rearmament and infrastructure expansion in Europe." The representative added, "For investors seeking to diversify their global asset allocation beyond the U.S., the KIWOOM Germany DAX ETF offers an effective alternative for easy access to the leading European market."