K-beauty takes off... Shinhan Asset Management’s SOL Cosmetics TOP3 Plus ETF ranks No. 1 in one-month returns

[Financial News] As K-beauty-related stocks continued to perform strongly despite last month’s market correction, Shinhan Asset Management’s SOL Cosmetics TOP3 Plus ETF posted strong results.
According to Shinhan Asset Management on the 2nd, the SOL Cosmetics TOP3 Plus ETF recorded a one-month return of 47.3% as of the end of last month. This was the highest among 1,152 domestically listed ETFs.
The SOL Cosmetics TOP3 Plus ETF had net assets of 123.1 billion won as of the end of last month, an increase of 58.5 billion won in one month. Individual investors made net purchases worth 16.8 billion won over the past month, bringing cumulative net purchases since the ETF’s listing to 46.5 billion won.
With South Korean stocks recently showing high volatility due to external factors such as rising international oil prices and U.S. Treasury yields, capital appears to have rotated away from the concentrated semiconductor sector and into cosmetics, where earnings and export momentum are more pronounced.
The SOL Cosmetics TOP3 Plus ETF invests approximately 60% of its portfolio in its top three holdings: Silicon2, Kolmar Korea, and APR, which represent the distribution, original development manufacturing (ODM), and brand segments of South Korea’s cosmetics value chain. It also selects ODM companies such as COSMECCA KOREA and Cosmax, along with brand companies including Amorepacific and d’Alba Global, which have notable global sales.
Kim Jeong-hyeon, head of the ETF Business Group at Shinhan Asset Management, explained, "K-beauty has entered a phase of qualitative growth unlike the past, as the diversification of global hit products from individual brands coincides with the parallel growth of the ODM and distribution companies supporting them." He added, "The SOL Cosmetics TOP3 Plus ETF invests across the industry, covering brands, ODM companies, and distributors, allowing investors to respond efficiently to the new K-beauty growth cycle."

[email protected] Seo Min-ji Reporter