ACE KPOP Focus ETF Surpasses 50 Billion KRW in Net Individual Purchases Since Start of Year

Korea Investment Management announced on August 4 that the net purchases made by individual investors in the ACE KPOP Focus Exchange Traded Fund (ETF) have surpassed 50 billion KRW since the beginning of the year.

According to the Korea Exchange, as of the closing price on August 1, individual investors have injected 54 billion KRW into the ACE KPOP Focus ETF this year, accounting for more than half of the total 103.3 billion KRW that has flowed into this ETF during the same period.

The inflow of funds into this ETF is attributed to its recent rapid growth. Since the start of the year, the ETF has recorded a return of 42.57%, ranking first among all media and entertainment ETFs listed in Korea. Its one-year return is close to 60%, while its six-month return stands at 26.33%.

This ETF invests approximately 95% of its assets in Korea's four major entertainment agencies and includes the top 10 companies with dominant market power in the KPOP industry. By focusing on leading agencies with a unique economic moat in the KPOP sector, investors can expect to benefit from the industry's growth. Additionally, diversification is essential when investing in the entertainment sector to minimize risks related to individual artists. Interest in ETF-based investment is increasing. Currently, the ETF's top holdings are SM Entertainment (25.86%), JYP Entertainment (25.09%), HYBE (22.95%), and YG Entertainment (20.63%).

Nam Yongsoo, Head of ETF Management at Korea Investment Management, stated, "The success of K-pop Demon Hunters and the soundtrack's entry into the upper ranks of the Billboard charts indicate that the KPOP industry is entering the global mainstream of popular culture." He added, "The expansion of the K-pop fanbase will mark an inflection point that dramatically broadens the industry's total addressable market (TAM). We expect significant growth in B2C revenue streams for KPOP agencies, including concerts, merchandising (MD), and fandom businesses."

Nam further emphasized, "The release of a full-length album and world tour by BLACKPINK in the second half of this year, as well as the full-group activities of BTS starting in 2026, are expected to serve as the largest revenue drivers in KPOP history."

The fund is a performance-based product, and past returns do not guarantee future results. Principal loss may occur depending on investment performance.