ACE BYD Value Chain Active ETF Newly Listed... "Korea's First BYD-Themed ETF"

Korea Investment Management will list the ACE BYD Value Chain Active Exchange Traded Fund (ETF) on the Korea Exchange on July 15.

The ACE BYD Value Chain Active ETF invests in BYD, a Chinese electric vehicle manufacturer, as well as companies related to the BYD value chain. This is the first ETF in Korea to be launched with a single Chinese technology stock theme.

Since the ETF invests in BYD and its related value chain, most of the components of the ACE BYD Value Chain Active ETF are companies listed in China and Hong Kong. The benchmark index (BM) is the Bloomberg BYD Plus Top Supply Chain Select Price Return Index (KRW-converted), which is calculated and published by Bloomberg.

The BM of the ACE BYD Value Chain Active ETF consists of 25% BYD stock and 75% Bloomberg BYD Top Supply Chain Select Index, which is a sub-index. The sub-index includes 14 key supply chain companies related to BYD, including BYD subsidiaries.

As an active ETF, it aims to outperform the BM. The core assets of the portfolio will primarily include stocks of BYD and key companies in the BYD supply chain. The strategic assets will include stocks that reflect the maturity and trends of the electric vehicle market, such as vehicle operating systems (OS) and robotics.

The ETF is managed by Hwang Wootaek, Head of Global Equity Management at Korea Investment Management, and Kim Wonjae, Senior Manager. Both are also responsible for managing the 'Korea Investment Global Electric Vehicle & Autonomous Driving Fund,' a leading domestic electric vehicle fund. According to FnGuide, as of July 11, this fund, which was launched in 2017, has recorded net assets exceeding 1 trillion KRW and invests in key companies related to the electric vehicle industry in the United States, China, Korea, and other countries.

Mr. Hwang has managed this product since its inception, while Mr. Kim joined as co-manager earlier this year. The electric vehicle-related funds managed jointly by Mr. Hwang and Mr. Kim include: the Korea Investment Global Electric Vehicle & Autonomous Driving Fund, the ACE Tesla Value Chain Active ETF, and the ACE Global Autonomous Driving Active ETF, totaling three funds. The combined net assets of these three funds amount to approximately 2.13 trillion KRW.

Mr. Kim stated, "BYD, which is showing rapid growth in the global market, is the number one electric vehicle seller in China," and explained, "Since there has not been an ETF in Korea focused on BYD and its related value chain, we decided to prepare a new product."

He added, "Recently, BYD has been expanding its business beyond electric vehicles into the humanoid robot sector, so further growth is expected. We will manage the ACE BYD Value Chain Active ETF to ensure investors can benefit from these opportunities."

As a performance-based product, there is a risk of principal loss depending on investment results.