Korea Investment Management’s ACE Secondary Battery & Eco-friendly Vehicle Active ETF Tops Category in Returns

The 'ACE Secondary Battery & Eco-friendly Vehicle Active' Exchange Traded Fund (ETF) by Korea Investment Management is leading in returns among ETFs of the same type, outperforming the average by 50 percentage points over various periods.

On September 16, Korea Investment Management announced that the ACE Secondary Battery & Eco-friendly Vehicle Active ETF ranked first among secondary battery-themed ETFs listed in Korea for 6-month, year-to-date, and 1-year returns.

According to the Korea Exchange, as of September 15, the 6-month, year-to-date, and 1-year returns for the ACE Secondary Battery & Eco-friendly Vehicle Active ETF were 16.19%, 44.95%, and 72.99%, respectively. These returns exceeded the average returns of ETFs in the same category by 28.37, 42.42, and 51.79 percentage points, respectively, during the same period.

The ETF has also outperformed its benchmark index. The benchmark for the ACE Secondary Battery & Eco-friendly Vehicle Active ETF is the 'FnGuide Eco-friendly Vehicle Value Chain Index,' and over the most recent 6-month and 1-year periods, the fund outperformed the benchmark by 0.89 and 1.59 percentage points, respectively. Its cumulative return since inception stands at 20.94%.

This strong performance is believed to result from a rebound in the earnings of domestic battery companies, driven by the growth of the global Energy Storage System (ESS) market. As the U.S. government has strengthened regulations on Chinese battery energy storage systems (BESS), Korean leading companies with local system integration subsidiaries are seeing tangible benefits. Additionally, the outlook for U.S. BESS capacity expansion over the next year, as announced by the U.S. Energy Information Administration (EIA), is also acting as a positive factor.

Major holdings include value chain leaders with both strong order performance and attractive valuations: Kia (8.18%), LG Energy Solution (8.07%), Hyundai Mobis (8.06%), POSCO Holdings (8.05%), and LG Electronics (8.02%).

Nam Yongsoo, Head of the ETF Division at Korea Investment Management, stated, "Amid global supply chain reorganization, export indicators related to secondary batteries are showing recovery, proving a turnaround in industry conditions." He added, "With the structural growth of the ESS and next-generation mobility markets expected to continue, the ACE Secondary Battery & Eco-friendly Vehicle Active ETF aims for long-term returns by investing in actively selected stocks."

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