PLUS K-Defense Leverage, K-Defense Shipbuilding Nuclear Power Funds Soar Since Start of Year

Hanwha K-Defense Shipbuilding Nuclear Power Fund Tops with 21.46% Year-to-Date Return
PLUS K-Defense Leverage Leads with 61.80% Return

Hanwha Asset Management announced on January 14 that the 'Hanwha K-Defense Shipbuilding Nuclear Power Fund' and 'PLUS K-Defense Leverage' ranked first in returns among domestic equity funds and exchange-traded funds (ETFs), respectively.

According to data compiled by financial information provider FnGuide, as of January 13, the 'Hanwha K-Defense Shipbuilding Nuclear Power Fund' recorded a year-to-date return of 21.46%, making it the top performer among all domestic active equity funds.

During the same period, 'PLUS K-Defense Leverage' posted a return of 61.80%, the highest among domestic equity ETFs.

The Hanwha K-Defense Shipbuilding Nuclear Power Fund is the only domestic product that combines the next-generation three core industries-defense, shipbuilding, and nuclear power-into a single fund. Through diversification, it aims for more stable returns and lower volatility compared to investing in individual sectors.

PLUS K-Defense Leverage is a leveraged ETF that tracks twice the performance of 'PLUS K-Defense.' It was listed in September last year.

Rising global geopolitical tensions have had an impact. Earlier this month, the United States conducted military operations in Venezuela, and President Donald Trump expressed interest in purchasing Greenland from Denmark, heightening security concerns.

Europe is also accelerating rearmament in response to security anxieties. Germany has set its 2026 defense budget at a record 108.2 billion euros, while the EU is pursuing a European rearmament plan worth 800 billion euros.

Choi Youngjin, Vice President of Hanwha Asset Management, explained, "As global security instability intensifies, defense stocks should not be seen as an 'industry that rises because of war,' but rather, from the perspective of autonomous defense to prevent war, the world is entering a period of structural growth where increased defense spending is inevitable, requiring a long-term approach." He added, "However, since leveraged products are highly volatile, investors should exercise caution."