SOL Korea Mega Tech Active ETF Surpasses 100 Billion KRW in Net Assets

Shinhan Asset Management announced on July 31 that the 'SOL Korea Mega Tech Active ETF' has surpassed 100 billion KRW in net assets.

Since its listing in October 2021, more than 80 billion KRW in retail funds, primarily from individual investors and banks, have flowed into the ETF. The net assets have surged, driven by strong returns. Over the past 1 month, 3 months, and 6 months, the ETF has achieved returns of 7.73%, 40.12%, and 50.86%, respectively. These figures have outperformed the KOSPI during the same periods.

Kim Jooyoung, Director of Equity Investment Management at Shinhan Asset Management, stated, "Since last year, we have strategically increased our allocation to AI power infrastructure and high-bandwidth memory (HBM), with key themes such as semiconductors and aerospace delivering performance that significantly outpaced the market, thereby driving the overall ETF returns."

He added, "ETFs that focus on specific themes can generate high returns during upward market phases. However, as volatility can increase during downturns, we are focusing on maintaining stable performance through flexible theme rotation and risk management strategies."

Among the active portfolio holdings, Doosan Enerbility, Hyosung Heavy Industries, and BHI have risen by 270%, 229%, and 174%, respectively, since the beginning of this year. After the regular rebalancing in June, Samsung Electronics and Hyundai Motor, whose weights were increased, also rose by 26% and 11%, respectively, over about a month. This is seen as a successful response to the rapidly changing theme rotation trends.

The SOL Korea Mega Tech Active ETF invests in core mega tech themes that are expected to drive the future industries of Korea, such as mobility, artificial intelligence, intelligent robotics, aerospace, and personalized healthcare. It is managed flexibly based on an active strategy, with monthly adjustments and the addition of new themes according to market conditions.

Kim also commented, "Taking into account the potential for full-scale trade negotiations with the United States, we have rebalanced the portfolio to reflect the rebound potential of the automobile and semiconductor sectors, which had previously been adjusted due to tariff uncertainties."