Samsung Asset Management provided

Samsung Asset Management announced the new listing of its exchange-traded fund (ETF) 'KODEX K Defense TOP10' on the 15th.

This ETF is composed of 10 selected stocks, considering factors such as ▲ the actual defense sales proportion ▲ the overseas export proportion ▲ the incorporation of artificial intelligence (AI) defense technologies, which influence the stock price movements of corporations in the defense industry.

KODEX K Defense TOP10 primarily invests about 80% in the 'big four' defense companies in Korea: Korea Aerospace Industries, Hanwha Aerospace, Hyundai Rotem, and LIG Nex1. Additionally, it also includes stocks related to defense systems, equipment, and consumables, such as Hanwha Systems and Poongsan.

Samsung Asset Management emphasized that the revenue ratio from defense-related activities of the stocks included in KODEX K Defense TOP10 accounts for over 70%. This aims to focus on corporations that have demonstrated competitiveness in the defense sector.

It also noted that the increasing importance of advanced technologies such as unmanned technology and AI tactical systems in recent conflicts will be reflected in the selection of KODEX K Defense TOP10 stocks, providing future-oriented investment opportunities.

Lee Dae-hwan, a manager at Samsung Asset Management, stated, "Starting in the second half of this year, a true screening of defense stocks will begin, and investor interest will focus on corporations that consider actual defense sales and export proportions."

He also suggested, "As the AI defense market grows with the development of drones and AI unmanned systems, there is a paradigm shift happening. Therefore, for investments in K defense corporations, it’s recommended to consider KODEX K Defense TOP10, which incorporates AI defense technology, when developing investment strategies for the second half of the year."

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