“July’s highest yield of 41.6%” Secondary battery ETF, what is the future?

July was the time of ‘secondary battery’ no matter what anyone said. Ecopro Group stocks, represented by Ecopro and Ecopro BM, and POSCO Group stocks led by POSCO Holdings and POSCO Future M ran without hesitation. In particular, Ecopro, which has been leading secondary battery stocks since the beginning of this year, became the ‘Emperor’ as the price per share exceeded 1 million won on July 18, and on July 26, it recorded the highest price of 1,539,000 won during the intraday. Ecopro BM, Posco Holdings, and Posco Future M also recorded the highest points of 584,000 won, 764,000 won, and 694,000 won, respectively, on the same day.

After peaking in July, individual stocks and 

ETFs declineThe beneficiaries of this strong secondary battery stocks also extended to exchange-traded funds ( ETFs ). According to the ‘July ETF market statistics’ announced by the Korea Exchange, the item that ranked first in monthly yield among all 733 ETFs in July was Mirae Asset Global Investments’ ‘ TIGER KRX2 Battery K- New Deal’ (see table). Listed in December 2021, this product, which tracks the KRX secondary battery K- New Deal index twice, recorded a monthly rate of return of 41.6% and an annual rate of return of 139.2% as of the end of July. The 52-week low was 4,990 won and the highest was 20,500 won. Major constituent assets include POSCO Future M, TIGER KRX2 rechargeable battery K- New Deal, LG Energy Solutions, Samsung SDI , LG Chem, Ecopro, Ecopro BM, SK Innovation, L&F, and SK IE

The second place in monthly yield was ‘ ACE Secondary Battery & Eco-friendly Vehicle Active’ of Korea Investment Trust Management, which embraces secondary battery stocks. Among KOSPI and KOSDAQ listed stocks, it is a product that follows the FnGuide eco-friendly vehicle value chain index, which indexes items with high degree of relatedness to eco-friendly vehicle value chain technology, such as electric vehicles, hydrogen vehicles, secondary batteries, and electric vehicle batteries. % was Based on the 52-week closing price since listing in May 2021, the lowest price was 8,105 won and the highest was 20,000 won. Posco International, Posco Holdings, Ecopro, Ecopro BM, and Posco Future M are in the top five, followed by New Nano Materials, Daejoo Electronic Materials, Posco DX, P&T, and Sungil Hitech . Shinhan Asset Management’s ‘ SOL Secondary Battery Manager Fn’

, which was listed in April, also ranked ninth with a 27.6% return in July. This product, which follows the FnGuide secondary battery manager index, is available from Ecopro, POSCO Holdings, Ecopro BM, POSCO Future M, LG Chem, L&F, Cosmo Advanced Materials, SK IE Technology, SKC, WCP, Lotte Energy Materials, Cosmo Chemical, Nano New Materials, Daeju Electronic Materials, Sungil Hitech, Chunbo, Solus Advanced Materials, Wonjun, Savitchem, Daebo Magnetics, etc. The 52-week low was 7,845 won and the highest was 14,350 won. The product that took the 10th place with a narrow gap from

‘ SOL Secondary Battery Manager Fn’ is the ‘ TIGER Secondary Battery Theme’ of Mirae Asset Global Investments. It followed the WISE secondary battery theme index and recorded a monthly rate of return of 27.3% and an annual rate of return of 126.9%. It was listed in September 2018, with a 52-week low of 16,070 won and a high of 45,725 won. Representative secondary battery owners Posco Holdings, Ecopro, Ecopro BM, and POSCO Future M are included in the top four stocks, followed by LG Energy Solutions, LG Chem, Samsung SDI , SK Innovation, L&F, and Cosmo Advanced Materials. In addition, since it is a product that deals with the overall secondary battery theme, SK IE Technology, SKC, WCP, P&T, Lotte Energy Materials, Nano New Materials, Soulbrain, Daeju Electronic Materials, Sungil Hitech, Cheonbo, Nchem, Shinsung Delta Tech, Solus Advanced Materials, CIS, Foosung, Hana Technology, Wonik P&E, It contains various stocks such as Corwin Tech, Savit Chem, Daebo Magnetic, Shinheung SEC, M Plus, and Inometry.

Bio/healthcare/medical device 

ETFs emerge one after anotherHowever, the problem lies in the fact that the future of these ETFs is not as bright as it used to be. This is because it is judged that the stock prices of the four stocks that led the secondary battery investment craze, Ecopro, Ecopro BM, Posco Holdings안전놀이터, and Posco Future M, have passed the peak and entered the correction period. According to the Korea Exchange on August 15, the market capitalization of the four stocks was tallied at 142,621.4 billion won as of the 14th. This is a decrease of 31.2373 trillion won (17.97%) compared to 173.8587 trillion won based on the closing price on July 26, when the stock prices of the four stocks recorded an intraday high.

The stock price of each stock fell by up to 30% over the 15 days of trading. Based on the closing price, Ecopro BM fell 30.11% from 455,000 won to 318,000 won on July 26, and Ecopro fell 10.99% from 1,228,000 won to 1,093,000 won. POSCO Holdings also fell 8.41% from 630,000 won to 577,000 won, and POSCO Future M also fell 22.5% from 560,000 won to 434,000 won.

The situation of secondary battery ETFs , which contain individual stocks related to secondary batteries , is no different. Based on the closing price, ‘ TIGER KRX secondary battery K- New Deal’ increased by 33.2% from 15,705 won to 10,480 won on July 26, and ‘ ACE secondary battery & eco-friendly vehicle active’ increased by 10,000 from 15,700 won. It fell 11.7% to 3870 won. Also ‘ SOLSecondary battery manager Fn’ was 15.8% from 12,100 won to 10,185 won, and ‘ TIGER secondary battery theme’ was 14.5% from 39,400 won to 337.15 million won.

Among experts, the analysis that secondary battery stock prices have passed the peak is the mainstream. Kim Ji-san, head of the research center at Kiwoom Securities, predicted, “In the past, it was difficult to sustain the evaluation value (valuation) after a stock price soared.” “This adjustment may continue for the time being.” Regarding the prospect of investing in secondary battery ETFs , Han Ji-young, a researcher at Kiwoom Securities, said , “Now that the overheating of secondary battery stocks is being resolved, secondary battery ETF stock prices are expected to continue to move sideways after a while.” If it is possible to make a profit, wouldn’t it be better to sell some of it and go?”

After the concentration of secondary battery stocks eases, there are opinions that supply and demand will spread to industries that were considered marginalized stocks. Regarding ETFs , a favorable atmosphere is being created in the bio and healthcare sectors that have been neglected so far. Earlier this month, Samsung Active Asset Management launched ‘ KoAct Bio-Healthcare Active’, the only active ETF in Korea that invests in the bio-healthcare sector . Celltrion Healthcare, Yuhan Corporation, Samsung Biologics, SKContains biopharmaceuticals. In addition, Timefolio Asset Management also listed ‘ TIMEFOLIO K Bioactive ETF’ on August 17, and Shinhan Asset Management plans to list ‘ SOL Medical Equipment Director ETF’ at the end of August.


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