Amid optimism about ESS growth, KODEX Solid-State Battery ESS net assets top KRW 300 billion

[Financial News] Money is flowing into related exchange-traded funds (ETFs) as demand for energy storage systems (ESS) grows with the spread of artificial intelligence (AI) data centers and battery companies show earnings growth.
According to the Korea Exchange on the 3rd, Samsung Asset Management’s ‘KODEX Solid-State Battery ESS TOP2 Plus’ ETF had surpassed KRW 300 billion in net assets as of the 27th of last month. The figure stood at KRW 334.2 billion as of the previous day.
The ETF’s net assets grew by about KRW 200 billion over the past month, the largest increase among domestic equity ETFs. Since its listing on June 23, cumulative net purchases by individual investors have reached KRW 76.7 billion, including KRW 24.4 billion in inflows over the past month alone. Its three-month return was 22.2%, ranking first among peer ETFs focused on areas such as secondary batteries and solid-state batteries.
The fund invests about 50% of its assets in Samsung SDI and LG Energy Solution, two of Korea’s leading battery companies. Both companies posted improved earnings in the third quarter of this year, aided by the expansion of their ESS businesses.
Samsung SDI returned to profitability, posting third-quarter revenue of KRW 4.6856 trillion and operating profit of KRW 407.8 billion. LG Energy Solution also recorded revenue of KRW 9.6434 trillion and operating profit of KRW 756 billion, up 59.0% and 25.7%, respectively, from a year earlier.
The remaining approximately 50% of assets is invested across companies involved in ESS components and equipment and solid-state battery materials. The fund includes ESS value-chain companies such as Sangsin EDP, Hanjung NCS and Seojin System, as well as solid-state battery materials companies such as ISU Specialty Chemical Co., Ltd., Daejoo Electronic Materials and POSCO Future M, seeking to capture medium- to long-term growth potential.
Shin Hyun-jin, a manager at Samsung Asset Management, said, “This is a time when improved ESS earnings, driven by surging power demand in North America, coincide with the commercialization momentum for solid-state batteries,” adding, “It is a core product that allows investors to invest in both the battery industry’s current earnings and its future growth potential.”

[email protected] Seo Min-ji Reporter