KB Asset Management's 'RISE Berkshire Portfolio TOP10' Posts 6.62% One-Month Return

Amid heightened volatility driven by concentration in a handful of market-leading stocks, including artificial intelligence (AI) and semiconductor stocks, KB Asset Management has highlighted an exchange-traded fund (ETF) built around Warren Buffett's long-term value-investing philosophy as an alternative for volatile markets.

On November 10, KB Asset Management said that as stock-price volatility increases, investment strategies focused on companies' long-term competitiveness and value are emerging as an alternative. It recommended the "RISE Berkshire Portfolio TOP10" ETF as an investment option.

The RISE Berkshire Portfolio TOP10 ETF invests in Berkshire Hathaway and the top 10 stocks in the investment portfolio Berkshire Hathaway reports to the U.S. Securities and Exchange Commission (SEC) on Form 13F. Its underlying index is the "Solactive Berkshire Portfolio Top10 Index," and it undergoes regular rebalancing according to quantitative, rule-based criteria.

The ETF has demonstrated solid defensive performance during the recent stock-market correction. As of November 5, its return over the previous month was 6.62%. This stood in sharp contrast to the Nasdaq 100 Index, which is weighted toward technology stocks, and the S&P 500 Index, which is composed of large-cap stocks; both fell during the same period, by 8.49% and 1.10%, respectively. In particular, the ETF gained 4.16% even on a day when the KOSPI plunged by more than 5%, demonstrating its ability to cushion the impact of a market downturn.

The portfolio is centered on leading U.S. companies, including Apple, Alphabet, American Express, Bank of America, Coca-Cola, and Chevron. It is characterized by diversified investments across sectors such as financials, consumer goods, information technology (IT), and energy.

The ETF also offers advantages in terms of costs and retirement-pension account eligibility. Its total annual expense ratio is 0.01%, and it is available for investment through defined-contribution (DC) and individual retirement pension (IRP) accounts, as well as pension savings accounts.

Yuk Dong-hwi, head of ETF Product Marketing at KB Asset Management, said, "As investment interest, which had been concentrated in specific sectors such as AI and semiconductors, expands to a wider range of industries, the importance of sector diversification is also growing." He added, "The RISE Berkshire Portfolio TOP10 ETF is characterized by its ability to provide exposure to leading global companies across a range of sectors, including financials, consumer goods, IT, and energy."

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