Shareholder-Return Stocks Surge, Delivering a 128% One-Year Return... ACE Shareholder Value ETF Ranks No. 1 in Its Theme

[Financial News] As shareholder-return policies, including higher dividends and share cancellations, emerge as factors driving a reevaluation of corporate value in South Korea’s stock market, related exchange-traded funds (ETFs) are also posting strong returns.
Korea Investment Management said on the 15th that the ACE Life Asset Shareholder Value Active ETF recorded the highest one-year return among domestic shareholder-return and shareholder-value themed ETFs.
According to the Korea Exchange (KRX), the ETF’s one-year return stood at 127.64% as of the previous day, far exceeding the 70.26% average for the four domestically listed ETFs in the same theme. Its six-month and year-to-date returns were also the highest in the theme, at 54.71% and 102.87%, respectively.
Its net assets also totaled 178.8 billion won, the largest among domestically listed shareholder-value ETFs.
The ACE Life Asset Shareholder Value Active ETF invests in large-cap, high-quality companies listed on the KOSPI and KOSDAQ that have strong potential to improve shareholder value through higher dividends, share cancellations, governance improvements, and greater capital efficiency. A key feature is that its portfolio is constructed with advice from Life Asset Management, an asset manager specializing in shareholder engagement.
As of the 14th, its major holdings included Samsung Electronics at 13.60%, SK hynix at 10.64%, Samsung Electronics Preferred Shares at 9.25%, and Hanmi Pharmaceutical at 6.36%.
Kim Su-min, head of the ESG Management Division at Korea Investment Management, said, "South Korea’s stock market is evolving beyond simply resolving undervaluation into a market that places greater importance on companies’ capital allocation and shareholder-return policies." Kim added, "The importance of strategies that select and invest in companies with expanding shareholder returns and high capital efficiency is also expected to grow."
[email protected] Bae Han-geul Reporter