Hyundai Rotem has been confirmed to be included in the global defense corporations investment fund 'VanEck Defense UCITS ETF' worth $5.9 billion (approximately 8.142 trillion won). This is the first time that Hyundai Rotem has been included among the total seven global defense funds currently operating worldwide.
According to a report obtained by ChosunBiz on the second quarter review and rebalancing of the U.S. MarketVector (MV) Global Defense Index, Hyundai Rotem has been selected as a new investment corporation. MarketVector is a subsidiary of the U.S. asset management firm VanEck that provides the index. VanEck manages the ETF tracking the MarketVector Defense Industry Index, which is listed on stock exchanges in 17 European countries, including the United Kingdom, Germany, and France.
Hyundai Rotem's investment ratio is approximately 2.94% of the total investment amount. Along with Hyundai Rotem, the German defense corporation Rheinmetall and U.K. firm Caiman Holdings have also been designated as new investment corporations. The VanEck Defense UCITS ETF decided to include Hyundai Rotem in its investment composition starting after the close of major European stock market transactions that day.
With this investment decision, Hyundai Rotem is expected to receive approximately $173.46 million (239.5 billion won) in passive funds, which are managed long-term while following an index. The VanEck Defense UCITS ETF will adjust its constituent items quarterly, meaning that Hyundai Rotem's investment amount could fluctuate in the future.
The industry evaluates that this investment decision has elevated Hyundai Rotem's status as a defense corporation. Hyundai Rotem is scheduled to sign a second contract (for 180 K2 tanks) with the Polish government worth $6 billion (approximately 8.3 trillion won) as early as the end of this month, and is currently in export negotiations for the K2 tanks with at least nine countries. Hyundai Rotem plans to double its K2 tank production capacity by investing 630 billion won to produce over 200 units annually.
The investment targets of the VanEck Defense UCITS ETF include a total of 28 global defense corporations, such as Palantir (U.S.), Leonardo (Italy), RTX Corporation (U.S.), and Thales (France). Domestic defense corporations Hanwha Aerospace and Korea Aerospace Industries (KAI) are also included.
An industry official noted, 'Being included in a global fund means that investors are paying close attention. Depending on this latest investment inclusion, there is a possibility that they could be included in other funds as well.'