Korea Investment Management announced on the 14th that it will newly list the ‘ACE BYD Value Chain Active’ exchange-traded fund (ETF) on the securities market on the 15th.
The ETF is a product that invests in BYD, a Chinese electric vehicle manufacturer, and corporations related to the BYD value chain. It is the first ETF in Korea based on a single Chinese technology stock.
This product is an active ETF that aims to exceed benchmark performance. The core assets of the portfolio mainly include stocks of BYD and BYD key supply chain corporations, while the strategic assets contain stocks that reflect the maturity and trends of the electric vehicle market, including vehicle operating systems (OS) and robotics.
The ETF management will be led by Director General Hwang Woo-taek and Kim Won-jae of Korea Investment Management. The two also manage the ‘Korea Investment Global Electric Vehicle & Autonomous Driving Fund,’ which is representative of domestic electric vehicle funds.
Kim noted, ‘BYD, which is showing rapid growth in the global market, is the number one electric vehicle sales company in China,’ adding, ‘There was no ETF in Korea that could focus on investing in BYD and related value chains, which is why we decided to prepare a new product.’