Korea Investment Management's ACE KPOP Focus ETF Surpasses 200 Billion KRW in Net Assets

Korea Investment Management announced on August 14 that the net asset value (NAV) of the ACE KPOP Focus Exchange Traded Fund (ETF) has surpassed 200 billion KRW.

According to the Korea Exchange, the ACE KPOP Focus ETF recorded a NAV of 212.5 billion KRW at the close of trading on August 11, surpassing the 200 billion KRW mark for the first time. The previous day’s closing NAV was 204.2 billion KRW. The fund’s size, which stood at 30.2 billion KRW at the end of last year, exceeded 100 billion KRW in mid-April and doubled to 200 billion KRW in just four months.

The ACE KPOP Focus ETF, launched by Korea Investment Management in January last year, is a concentrated ETF that invests approximately 95% of its assets in leading domestic KPOP entertainment agencies. The fund tracks the 'iSelect K-POP Focus Index,' which consists of the top 10 companies with dominant market share in the KPOP industry. Currently, the top holdings include: SM Entertainment (25.59%), JYP Entertainment (23.98%), HYBE (22.68%), and YG Entertainment (22.21%).

The rapid growth of this ETF has been attributed to two main factors: the active net buying by individual investors and its strong returns. Since the beginning of the year, individual investors have made net purchases totaling 63.1 billion KRW in the ACE KPOP Focus ETF. This ranks first among the five ETFs classified under the 'Media/Entertainment' theme on Koscom ETF Check, accounting for 87.52% of the combined net purchases (72.1 billion KRW) of these five ETFs.

In terms of performance, the ETF also led its category. Its year-to-date return stands at 57.43%, ranking first among similar products and significantly outperforming the average return of 36.33%. During the same period, it also far outperformed major indices such as the KOSPI (34.38%) and the NASDAQ 100 (13.50%). The ETF’s six-month and one-year returns were 30.79% and 91.23%, respectively.

Lee Nayoun, Head of Equity Research at Korea Investment Management, stated, "One of the songs from the animation 'K-Pop Demon Hunters,' titled 'Golden,' topped the Billboard Hot 100 chart, indicating the potential for K-POP to expand its appeal." She added, "Going forward, algorithm-based recommendations of similar K-pop styles are expected to help popularize K-pop among male and middle-aged demographics."

Nam Yongsoo, Head of ETF Management at Korea Investment Management, said, "The global K-POP fandom continues to grow, and as the market base expands beyond Asia to the Americas, Europe, and emerging markets, the growth potential is being further strengthened." He continued, "In the second half of the year, major events such as the release of a full-length BLACKPINK album and world tour, as well as the resumption of full-group BTS activities in 2026, are expected to stimulate the global fandom." He added, "This will likely enhance both the earnings momentum of related companies and the value of K-POP intellectual property (IP)."

Nam further emphasized, "With the recent recovery in the stock market and the rise in entertainment sector stock prices, the ACE KPOP Focus ETF has delivered outstanding results," adding, "It is a suitable investment vehicle for capturing the long-term growth trends of the K-POP industry."

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