WON Mega IB & Financial Holding Companies ETF Posts 53% Return Since Listing, AUM Surpasses 100 Billion Won

Top Performer in Returns Among Newly Listed ETFs This Year

The "WON Mega IB & Financial Holding Companies" ETF managed by Woori Asset Management has posted a 53% return in just over one month since its listing, ranking first among ETFs listed this year.

Woori Asset Management announced on the 25th that the WON Mega IB & Financial Holding Companies ETF has recorded a 53.28% return since its listing. This figure is based on the performance of ETFs listed this year, compiled as of the 23rd.

Even compared with financial ETFs that include both securities and banking sectors, it has delivered an outstanding return. Its 1?month return stands at 44.21% (as of the 23rd), the highest level in the market.

On the back of this performance, its assets under management (AUM) surpassed 100 billion won just over a month after listing. This is seen as a result of investment demand concentrating on securities stocks and financial holding companies amid the recent bullish run in the KOSPI. Trading value in equities has increased, which is expected to boost brokerage (commission) income for securities firms, and this has coincided with a recovery in the initial public offering (IPO) market, further heightening expectations for strong earnings.

The WON Mega IB & Financial Holding Companies ETF is designed to allow investors to directly benefit from this upside for securities firms. It focuses its investments on mega investment banks such as Mirae Asset Securities, Kiwoom Securities, and NH Investment & Securities, as well as leading financial holding companies such as Woori Financial Group, Korea Financial Group, and Hana Financial Group, which represent the domestic financial industry. A key feature is that it includes both securities and banking sectors, thereby capturing growth potential across the broader financial sector.

In addition, the third amendment to the Commercial Act, which is set to be put to a vote at a plenary session of the National Assembly, is expected to strengthen the value?up momentum (upward driver) across the financial industry. The third amendment to the Commercial Act includes a provision that, in principle, makes the retirement of treasury shares mandatory for companies.

Treasury share retirement is regarded as a factor that drives share prices higher. When treasury shares are retired, the number of shares circulating in the market decreases, thereby increasing the value per share. Securities and financial holding company sectors, which have a high proportion of treasury shares and ample capacity for shareholder returns, are being highlighted as the biggest beneficiaries of this amendment.

Choi Hongseok, Head of the ETF Solutions Division at Woori Asset Management, said, "As the steep rise in the KOSPI coincides with strong earnings at financial holding companies, mega IBs and financial holding companies are delivering results that exceed market expectations," adding, "If the third amendment to the Commercial Act passes, we expect a full?fledged value?up rally among the ETF's constituent stocks, so this ETF should be watched as a leading product that will drive the stock market."