KODEX K-Defense TOP10 Leverage Achieves 10% Return on First Day of Listing

As geopolitical risks intensify worldwide and countries increase their defense budgets, investment momentum in K-Defense is strengthening.

Samsung Asset Management announced on the 17th that the 'KODEX K-Defense TOP10 Leverage' ETF, which was listed on the 16th, recorded a 10.3% return on its first day of trading, marking the highest first-day return among all ETFs.

The KODEX K-Defense TOP10 Leverage is a product that tracks twice the daily return of the KODEX K-Defense TOP10 Index. It employs a strategy focused on investing in "genuine defense" companies, selecting stocks based on a comprehensive assessment of actual defense sales ratio, export ratio, and the integration of AI technology.

The fund concentrates approximately 160% (with leverage, twice the weight) of its investments in Korea's leading "BIG 4" defense companies driving the growth of K-Defense: Korea Aerospace Industries (KAI), Hanwha Aerospace, Hyundai Rotem, and LIG Nex1.

In light of the global attention on Korea's defense industry, Samsung Asset Management has adopted a strategy of investing in core companies that demonstrate competitiveness through defense as their primary business, rather than companies for which defense is a secondary operation. This is to meet the needs of investors who wish to more actively follow the characteristics of the defense theme, which is highly sensitive to geopolitical issues.

With the launch of the KODEX K-Defense TOP10 Leverage, in addition to the existing KODEX Semiconductor Leverage and KODEX Secondary Battery Industry Leverage, Samsung Asset Management has expanded its lineup of domestic theme leverage ETFs. This meets the diverse needs of investors.

The two existing domestic theme leverage ETFs have recorded a net purchase by individual investors of 204.2 billion won since the beginning of the year. KODEX Semiconductor Leverage has achieved a 115% return since the start of the year, efficiently providing exposure to theme indices such as semiconductors and secondary batteries-areas where Korean companies have a competitive edge-by tracking them at twice the rate.

Song Ahyun, a manager at Samsung Asset Management, stated, "The product was designed to reflect the characteristics of the defense industry, which is highly sensitive to global geopolitical issues, resulting in the highest first-day return. In an environment where continued orders are expected, the KODEX K-Defense TOP10 Leverage, which invests twice as much in Korea's leading defense stocks, will provide investors with a great opportunity."

The KODEX K-Nuclear SMR, which was listed at the same time, also recorded the highest first-day trading volume among all ETFs, with approximately 18.2 million shares traded. This ETF focuses on core companies in the small modular reactor (SMR) sector, which is gaining attention as an AI power shortage solution. Around 15 domestic key export companies, such as Doosan Enerbility, Hyundai Engineering & Construction, and BHI, which have proven their competitiveness on the global stage, have been carefully selected. The fund aims to minimize the impact of domestic policy and focus on capturing global growth momentum.