'SOL Chosun TOP3 Plus Leverage ETF' to Be Newly Listed

Shinhan Asset Management is set to list the 'SOL Chosun TOP3 Plus Leverage' ETF on the Korea Exchange on July 15, 2025.

This leveraged product is designed to track twice the daily return of the underlying index, the 'FnGuide Chosun TOP3 Plus Index,' which focuses on Korea's leading shipbuilding stocks.

In the domestic ETF market, industry-themed leveraged ETFs have previously been launched for the semiconductor and secondary battery sectors, making shipbuilding the third such sector. This reflects the emergence of the shipbuilding industry as a new growth driver, moving beyond its traditional role as a cyclical sector. The product is aimed at investors seeking to more aggressively capture the upward momentum of shipbuilding stocks.

Kim Junghyun, Head of ETF Business at Shinhan Asset Management, stated, "The global status of Korea's shipbuilding industry has risen, and the sector has moved beyond its traditional cyclical nature. It has now entered a phase of structural growth, driven not only by replacement demand for aging vessels but also by increasing demand for eco-friendly ships and special-purpose defense vessels."

He added, "The SOL Chosun TOP3 Plus Leverage ETF provides a tool to diversify tactical investment strategies in shipbuilding stocks with a confirmed strong trend. It will also serve as an effective solution for short-term asset allocation strategies."

The Korean shipbuilding industry, after more than 20 years of restructuring and realignment, is now considered to have entered a new supercycle. This is due to the explosive increase in demand for high value-added vessels, the expansion of orders for eco-friendly and special-purpose defense ships centered on the United States and Europe, and changes in the global shipping structure.

In fact, since 2024, the performance of major shipbuilders has improved rapidly. Twelve-month forward operating profit estimates have continued to rise, and strong results in the first quarter of 2025 have led experts to raise their stock price forecasts.

Kim noted, "Although some investors are concerned about valuation burdens due to the rapid rise in shipbuilding stock prices since last year, from a performance-based valuation perspective, these concerns may be alleviated as earnings forecasts are revised upward." He further commented, "There are multiple positive factors surrounding the shipbuilding industry, including expectations for the repeal of the U.S. Jones Act, HD Hyundai's entry into the U.S. merchant ship market, and the expansion of U.S. military ship MRO. Therefore, not only medium- to long-term investment but also short-term trading strategies remain valid."

SOL Chosun TOP3 Plus has established itself as a leading domestic equity ETF, attracting over 500 billion KRW in inflows over the past year and surpassing 1 trillion KRW in net assets. The ETF invests in a total of 13 shipbuilding and equipment companies, centering on the three major shipbuilders?HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean, and Samsung Heavy Industries?as well as HD Hyundai Mipo, HD Hyundai Heavy Industries, HD Hyundai Marine Solution, Hanwha Engine, STX Engine, Hyundai Himsen, Dongsung FineTec, and Sungkwang Bend. The portfolio consists of 80% shipbuilders and 20% equipment companies.