Shinhan Asset Management will newly list the "SOL Shipbuilding TOP3 Plus Leveraged" exchange-traded fund (ETF) on the securities market on the 15th.
This ETF is a leveraged product designed to track the daily revenue rate of the underlying index "FnGuide Shipbuilding TOP3 Plus," which focuses on major domestic shipbuilding stocks at double the revenue.
According to Shinhan Asset Management, in the domestic ETF market, the sectoral theme-based leveraged ETFs follow semiconductors and secondary batteries, making shipbuilding the third.
"SOL Shipbuilding TOP3 Plus" saw an inflow of over 500 billion won last year, surpassing a net worth of 1 trillion won. It invests in a total of 13 stocks, focusing on the three major shipbuilders: HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean, and Samsung Heavy Industries, as well as shipyards and equipment companies such as HD Hyundai Mipo, HD Hyundai Heavy Industries, HD Hyundai Marine Solution, Hanwha Engine, STX Engine, HYUNDAI HYMS, Dongsung Finetec, and SungKwang Bend. The proportion of shipbuilders and equipment companies comprises 80% to 20%.
Kim Jung-hyun, head of the ETF business at Shinhan Asset Management, said, "The SOL Shipbuilding TOP3 Plus Leveraged ETF serves as a means to diversify tactical investment strategies in shipbuilding stocks with confirmed strong directionality and will be an effective solution for short-term asset allocation strategies. Given the positive momentum surrounding the shipbuilding industry, including expectations for the repeal of the Jones Act in the U.S., HD Hyundai's entry into the U.S. merchant ship market, and the expansion of maintenance, repair, and overhaul (MRO) for U.S. military vessels, both medium- to long-term investments and short-term trading strategies are valid."