Korea¡¯s EV battery ETFs start yielding higher on battery stock rally

Exchange-traded funds (ETFs) tracking the portfolio of secondary battery stocks in South Korea have yielded handsome returns on expectations for rapid growth of the U.S. electric vehicle market, recovering from the shock caused by a slew of announcements that finished carmakers will try to in-source EV batteries.

ETFs that invest in EV battery stocks like Samsung SDI, Ecopro BM, L&F and Chunbo recently made a dramatic turnaround with eye-catching yields driven by recovering prices of those stocks, according to the Korea Exchange on Wednesday.

Samsung KODEX Secondary Battery Industry ETF, the biggest of the kind, has yielded an average of 9.98 percent over the past month, higher than the average three-month yield of 4 percent. The fund investment portfolio is made up of 18.32 percent in LG Chem, 16.25 percent in Samsung SDI, 14.70 percent in Posco Chemical, and 13.34 percent in SK Innovation. The year-to-date return is 29.42 percent.

Mirae Asset Global Investments¡¯ flagship battery ETFs – TIGER Secondary Battery Theme ETF and TIGER KRX Secondary Battery K-New Deal ETF – also performed well, delivering a one-month average return of 10.13 percent and 7.39 percent, respectively.

Fund yields varied depending on the portion of stocks included in each portfolio.

TIGER Secondary Battery Theme ETF invests 10.42 percent in Posco Chemical and 10.25 percent SK IE Technology. Posco Chemical shares that hovered around 140,000 won in May and June rose to 165,000 won as of Wednesday. SK IET shares also jumped to above 200,000 won from the 130,000 won level since listing in May.

TIGER KRX Secondary Battery K-New Deal ETF focuses on the country¡¯s big three battery makers Samsung SDI (25.38 percent), SK Innovation (24.10 percent) and LG Chem (22.50 percent). SK Innovation and LG Chem shares however have been boxed in between 260,000 won and 270,000 won after touching the 300,000 won range early this year.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]