KB Asset Management announced Wednesday that its RISE Korea Value-Up exchange-traded fund has surpassed 800 billion won ($580 million) in net assets, making it the largest among domestic value-up ETFs.
According to fund evaluator FnGuide, the RISE Korea Value-Up ETF posted returns of 53.93%, 80.83%, and 152.24% over the past three months, six months, and one year respectively as of the previous trading day. The fund ranks first among nine passive ETFs tracking the Korea Value-Up Index.
The RISE Korea Value-Up is a monthly dividend product with a portfolio centered on value-up companies in core industries representing the Korean stock market, including semiconductors, automobiles, and financial services. Major holdings include SK Hynix (29.22%), Samsung Electronics (20.47%), Hyundai Motor (5.23%), KB Financial (3.55%), and Hanwha Aerospace (3.33%).
Despite heightened stock market volatility, shares of companies benefiting from value-up policies have shown relatively stable performance. Growing expectations for resolving the "Korea Discount" have been fueled by the government's capital market advancement policies and the spread of shareholder-friendly measures among listed companies, including share buybacks, dividend increases, and governance improvements.
Cost competitiveness is another strength of the RISE Korea Value-Up ETF. The fund's total expense ratio stands at 0.008% annually, the lowest in its category.
"As market volatility increases, preference is growing for companies with stable earnings capacity and undervaluation appeal, making the RISE Korea Value-Up ETF an effective investment vehicle," said Yuk Dong-hwi, head of ETF product marketing at KB Asset Management. "Another strength is providing stable cash flow through monthly dividends distributed mid-month."
