KB Asset Management Launches New 'RISE Samsung SK Group ETF'

Diversified Investment in 10 Leading Stocks of Samsung and SK Groups

KB Asset Management announced on September 22 that it will launch the ‘RISE Samsung SK Group’ Exchange-Traded Fund (ETF), which invests in key subsidiaries of the Samsung Group and SK Group.

The RISE Samsung SK Group ETF is a product that invests in the top 10 companies by free-float market capitalization among listed companies of the Samsung and SK Groups. It includes major subsidiaries from both groups, such as Samsung Electronics and SK hynix, within a single product.

The benchmark index is the ‘KAP Samsung SK Group Index’. It incorporates key subsidiaries from both groups, including Samsung Electronics, SK hynix, Samsung Electro-Mechanics, Samsung Life Insurance, and SK Square. The ETF is constructed to include at least four stocks from each group, limit the weighting of any individual stock to 25%, and restrict the combined weight of the top four stocks to not exceed 80%.

The RISE Samsung SK Group ETF offers exposure to the core subsidiaries of both groups while diversifying across a range of industries rather than concentrating on a few specific stocks. In particular, the fund allocates across four sectors—semiconductors and electronic components, secondary batteries, finance and holding companies, and communications and artificial intelligence (AI) infrastructure—focusing on companies like Samsung Electronics and SK hynix, which are benefiting from improving industry conditions. This helps avoid excessive concentration in any one sector.

The main holdings include Samsung Electronics (25.14%), SK hynix (24.58%), SK Square (14.07%), Samsung Electro-Mechanics (11.35%), Samsung C&T (5.06%), Samsung SDI (4.95%), Samsung Life Insurance (4.47%), SK Inc. (4.14%), Samsung Fire & Marine Insurance (3.53%), and SK Telecom (1.89%).

The expanding shareholder return policies centering on major subsidiaries of Samsung and SK are also key investment highlights. Samsung C&T and SK Square, for example, are enhancing shareholder value through measures such as increased dividends and share buybacks and retirements.

Dividends will be paid in January, April, July, and October each year. The total annual fee is set at 0.15%.

Yook Donghwi, Director of ETF Product Marketing at KB Asset Management, stated, “The RISE Samsung SK Group ETF is designed to allow investors to invest in the core subsidiaries of Samsung and SK, two of Korea’s leading conglomerates, while also diversifying across various sectors. As it includes major subsidiaries such as Samsung Electronics and SK hynix, as well as those in electronic components, secondary batteries, finance, and communications, it can offer a new option for investors looking to participate in the growth of the Samsung and SK Groups.”

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