SOL Chosun TOP3 Plus Leverage ETF Achieves 25% Return in Ten Days After Listing

Shinhan Asset Management announced on the 28th that the 'SOL Chosun TOP3 Plus Leverage ETF' had risen by 25.21% just ten days after its listing on the 15th.

This ETF is a leveraged product designed to track twice the daily return of the 'FnGuide Chosun TOP3 Plus Index', which is composed of leading stocks in the shipbuilding sector. During the same period, the SOL Chosun TOP3 Plus ETF, which tracks the same index, rose by 12.13%.

As investment sentiment toward the shipbuilding sector recovers and short-term trading demand from individual investors increases, the net purchase amount by individuals after the listing of the SOL Chosun TOP3 Plus Leverage ETF reached 29.3 billion KRW.

Kim Junghyun, Head of ETF Business at Shinhan Asset Management, stated, "Shipbuilding stocks, which had been steadily rising since the beginning of the year, underwent a correction phase in early July due to profit-taking," and added, "This was a temporary adjustment driven by supply-demand and psychological factors, not by industry fundamentals." He further analyzed, "Ahead of the second quarter earnings season, there is growing demand to use this as a buying opportunity at lower prices."

Over the past month, the SOL Chosun TOP3 Plus ETF showed somewhat sluggish performance. This is believed to be due to short-term fatigue accumulating as funds rotated into other sectors such as semiconductors and secondary batteries, as well as the spread of rumors regarding poor earnings at some shipbuilding companies, which also affected investor sentiment.

Kim explained, "The domestic shipbuilding industry has entered a long-term growth trajectory due to structural growth drivers such as demand for replacing aging ships, transition to eco-friendly vessels, and increased orders for special defense ships." He added, "In the short term, there are also risk factors such as cost burdens from rising prices of shipbuilding equipment and uncertainty in order timing due to delays in LNG carrier orders."

He also advised, "During sharp rallies, it is necessary to respond with partial selling, and during corrections, it is also advisable to employ short-term trading strategies using the 'SOL Chosun TOP3 Plus Leverage ETF.'"