'KIWOOM US S&P500 Momentum' ETF Surpasses 100 Billion Won in Net Assets

Focusing on Winning Companies
Considering Volatility and Profitability Within the S&P500

KIWOOM Asset Management announced on the 18th that the net asset value (NAV) of the 'KIWOOM US S&P500 Momentum' exchange-traded fund (ETF) has surpassed 100 billion won.

According to the Korea Exchange, as of August 14, the NAV of this ETF stood at 110.1 billion won. The NAV, which was around 31.9 billion won at the beginning of this year, has more than tripled in just about eight months.

Recently, with the rapid advancement of the artificial intelligence (AI) industry, new leading companies are continuously emerging as technology and market environments evolve. On the other hand, as it becomes increasingly difficult to predict which company will be the long-term winner, momentum strategy ETFs that can identify new winners—rather than ETFs simply following market capitalization—are receiving greater attention.

The KIWOOM US S&P500 Momentum ETF invests in the top 100 S&P500 companies with the highest performance over the most recent 12 months. The ETF applies a momentum-weighted approach, granting higher weights to stocks exhibiting stronger trends based on their momentum score (12-month return divided by volatility).

Additionally, it tracks the same underlying index as the leading US momentum ETF (SPMO), the 'S&P500 Momentum Index.' This index has been managed in the US over an extended period, delivering both stable and strong performance.

Since the beginning of this year, the KIWOOM US S&P500 Momentum ETF has delivered performance exceeding both the S&P500 and the Nasdaq 100. Market watchers attributed this strong performance to its strategy of concentrated investment in leading companies during periods of heightened market volatility.

Notably, this product rebalances its holdings and weights every March and September to adapt to changes in market conditions. In the March rebalancing, the portfolio rotation rate based on holdings reached as high as 54.5%, resulting in significant portfolio adjustments. The IT sector allocation was increased from 33.2% to 44.4%, while the financial sector allocation was reduced from 19.5% to 6.3%.

Lee Kyungjun, head of ETF management at KIWOOM Asset Management, said, "While long-term investment demand for the S&P500 is growing, there is also rising interest in actively investing in leading companies within the S&P500. The momentum strategy, which reflects changes in market leadership according to predefined principles without limiting itself to a specific sector, is establishing itself as a new alternative for S&P500 investment."

This content was produced with the assistance of AI translation services.