'KODEX All Solid State Battery ESS TOP2 Plus' ETF Surpasses KRW 300 Billion in Net Assets

Nearly KRW 200 billion increase over the past month
Investing across the ESS value chain and all-solid-state batteries
Three-month return of 22.2%, the highest among peers

Samsung Asset Management said on November 3 that its KODEX All Solid State Battery ESS TOP2 Plus exchange-traded fund (ETF) surpassed KRW 300 billion in net assets, reaching KRW 334.2 billion.

Since the product was listed on June 23, cumulative net purchases by individual investors have reached KRW 76.7 billion, including KRW 24.4 billion in net purchases over the past month alone. As a result, net assets increased by nearly KRW 200 billion over the past month, the largest increase among domestic equity ETFs.

The fund is believed to have continued attracting inflows on the back of a clear recovery in earnings at its key holdings and the medium- to long-term growth prospects of the ESS and all-solid-state battery industries. It also posted a 22.2% return over the past three months, ranking first among ETFs in similar categories, including secondary batteries and all-solid-state batteries.

The ETF invests about 50% of its assets in two leading domestic battery cell makers, Samsung SDI and LG Energy Solution. Strong third-quarter results recently announced by both companies, along with their success in securing global orders, have further enhanced their investment appeal.

Samsung SDI returned to profitability in the third quarter of this year, posting revenue of KRW 4.6856 trillion and operating profit of KRW 407.8 billion, driven by increased sales of ESS and battery backup units (BBUs) for AI data centers. LG Energy Solution also reported a marked improvement in results, with preliminary third-quarter revenue of KRW 9.6434 trillion, up 59.0%, and operating profit of KRW 756 billion, up 25.7%.

The remaining approximately 50% of the portfolio is invested across ESS component and equipment makers and all-solid-state battery materials companies, aiming to capture supply-chain spillover benefits from increased orders for major cell makers. It holds ESS value-chain companies such as Sangsin EDP, HanJung NCS, Seojin System, and SFA Nexel, which are positioned to benefit from expanded mass production and capital investment. In the all-solid-state battery sector, it also holds key materials companies including ISU Specialty Chemical, Daejoo Electronic Materials, LOTTE Energy Materials, POSCO Future M, and L&F.

Shin Hyunjin, a manager at Samsung Asset Management, said, "This is a point at which improving ESS results driven by surging power demand in North America coincide with the commercialization momentum for all-solid-state batteries. The KODEX All Solid State Battery ESS TOP2 Plus is a key product that offers exposure to both the battery industry's current earnings and its future growth potential."

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