Kiwoom Asset Management Launches Two ETFs Targeting the North American Battery and Semiconductor Supply Chains Operated by South Korean Companies Tracking Two Solactive Indices
Solactive is pleased to expand its collaboration with Kiwoom Asset Management by providing the underlying indices to the KIWOOM KOSEF K-Battery North America Supply Chain and the KIWOOM KOSEF K-Semiconductor North America Supply Chain. The Solactive K-Battery North America Supply Chain Index and the Solactive K-Semiconductor North America Supply Chain Index track the performance of South Korean companies that are key players in the supply chain for the North American semiconductor and battery industries.
Both the semiconductor and battery manufacturing industries are benefiting from tailwinds from the U.S. legislative initiatives such as the Inflation Reduction and CHIPS Acts that are aimed at strengthening supply chains in these critical technologies. This is likely to create opportunities for South Korean companies with strong technological expertise and extensive experience in both sectors to expand their market presence in North America.
The Solactive K-Battery North America Supply Chain Index tracks the performance of the 15 eligible South Korea-listed companies with the highest topical exposure to the battery supply chain in North America. The constituents are selected based on their topical score according to ARTISÒ – Solactive’s proprietary natural language processing tool for determining thematic exposures – and the relative revenue generated from North American sales. The index basket encompasses companies with considerable exposure in advanced battery lithium-based technologies, lithium-integrated storage solutions, lithium mobility and vehicle integration, as well as sustainable lithium battery lifecycle management.
The Solactive K-Semiconductor North America Supply Chain Index tracks the performance of the top 15 eligible South Korea-listed companies operating in the semiconductor supply chain for North America. The selection is based on a granular sector classification framework and also considers the relative revenue generated from North American sales. Index constituents include companies from the following highly relevant industries: semiconductor manufacturing, semiconductor equipment and services, industrial materials manufacturing, and IC-level intellectual property software libraries.
The KIWOOM KOSEF K-Battery North America Supply Chain and KIWOOM KOSEF K-Semiconductor North America Supply Chain listed on 23 July 2024 on the Korea Stock Exchange (KRX) with the ticker code 488200.KS and 488210.KS.
Timo Pfeiffer, Chief Markets Officer at Solactive, commented “We are excited to collaborate with Kiwoom Asset Management by providing tailor made index solutions designed to ensure optimal coverage of the selected strategic themes with fully rules-based indices as underlyings for these new ETFs. The ETFs offer investors unique exposure to many fast-growing application fields such as electric vehicles, consumer electronics or renewable energies and energy storage.”
Seongin Jeong, Head of ETF Business Department at Kiwoom Asset Management, commented: “The semiconductor and secondary battery industries are where Korea’s leading companies are globally competitive. With the U.S.’s attempt to strengthen the industry supply chain, Korean companies closely connected to the North American supply chain are expected to benefit. These two products, created in collaboration with Solactive, offer an approach to investing in the Korean semiconductor and secondary battery industries with a focus on the North American supply chain. We look forward to providing global investors with new investment opportunities in the Korean semiconductor and secondary battery industries.”