PLUS K-Defense ETF Surpasses 1 Trillion Won in Net Assets

Hanwha Asset Management announced on June 18 that the net asset value (NAV) of the PLUS K-Defense Exchange Traded Fund (ETF) has surpassed 1 trillion won. This marks the first time that an ETF launched by Hanwha Asset Management has exceeded 1 trillion won in NAV.

According to financial information provider FnGuide, the PLUS K-Defense ETF recorded a NAV of 1.0417 trillion won as of June 16. Since the beginning of this year, its NAV has increased by 730.8 billion won. This is the second-largest NAV increase among domestic investment ETFs. PLUS K-Defense ETF is the only domestic thematic ETF to have surpassed 1 trillion won in NAV so far this year.

K-Defense, once considered a domestically focused industry, has recently secured a series of large-scale export contracts in Europe, the Middle East, and other global markets. It has now emerged as a new growth industry representing Korea, following semiconductors and secondary batteries.

Choi Youngjin, Executive Director and Head of Marketing at Hanwha Asset Management, explained, "As the global value chain led by the United States and the free market economy become destabilized, the world has turned into a potential conflict zone where military tensions can erupt at any time, as seen in Russia's invasion of Ukraine and the armed clashes between Iran and Israel." He added, "The growth of Korea's defense industry is not a temporary phenomenon but a result of structural changes in the international order."

Hanwha Asset Management focused its efforts on discovering and nurturing undervalued defense industry stocks during a period when investment sentiment toward the domestic stock market was subdued. During the early days of listing, when the K-Defense theme was unfamiliar, all departments?including marketing, management, and research?worked together organically to change market perceptions. The company communicated continuously through various sales channels, holding seminars for individual investors as well as training sessions for private bankers (PBs) at sales partners.

As of June 16, the year-to-date return of the PLUS K-Defense ETF is 172.46%. Since its inception on January 5, 2023, the cumulative return has reached 424.18%.

Choi Youngjin stated, "While others chose the easy path, we believed in the potential of companies that form the backbone of Korea’s economy and chose the more challenging route of fully conveying their growth stories to investors." He emphasized, "Beyond simply creating and selling ETF products, we shared and built consensus around the vision and value of K-Defense with our clients and sales partners, which I believe has resulted in the 1 trillion won in trust we have earned."

He added, "Based on the success formula of the PLUS K-Defense ETF, we will continue to discover great growth stories hidden across Korea and establish ourselves as the leading provider of strategic ETFs that deliver real value to investors' assets."

In July last year, Hanwha Asset Management rebranded its ETF lineup from ARIRANG to PLUS, clarifying its strategic direction. Under the philosophy of "creating visible value from the invisible," the company introduced products such as the PLUS Hanwha Group Stocks ETF and the PLUS China AI Tech ETF, while also strengthening its lineup of PLUS high-dividend ETFs.