Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Index Rebalance

What is the KRX BBIG K-New Deal Index?The KRX BBIG K-New Deal Index consists of 12 stocks, each of which is a representative company in four industries, including rechargeable Batteries, Bio, Internet, and Games, which are the leading industries in the Korean stock market.It is important to note that this is a mother index, under which there are four sub-indices, like one for each sector. Each sub-index has ten constituents selected based on market capitalization.Index weight &amp; number of constituentsThe mother index is an equal-weighted index, in which each index constituent is allocated the same weight at each balancing, 1/12 = 8.33%.But the four sub-indices employ a hybrid weight system. The top-three group is given the weight of 75%, in which each stock is allocated the same weight of 25% at each rebalancing. In comparison, the plus group consisting of the remaining seven constituents is given the remaining weight of 25%, in which their float-adjusted market capitalization weights the seven stocks.Screening criteria, period, base date, &amp; implementation dateScreening for index inclusion is based on the average daily market capitalization and the average daily trading value of an eligible company over the screening period. Companies are screened over the three months preceding the screening base date.Regular rebalancings are made at the end of February and August every year. This year, February 26 and August 31 are the implementation dates of the regular rebalancing.Therefore, the screening base date is January 29 and July 30, which are the last days of the previous month.
Screening details

Criteria
Average daily market capitalization


Period
3 months preceding the screening base date


Base date

Last trading day of January and July
: January 29 and July 30 



Implementation date

Last trading day of February and August
: February 26 &amp; August 31 


Source: KRX
Current constituents &amp; index weights, as of June 18, 2021Below is the index weight of the constituent stocks of each index based on last Friday's closing price. The index weight reset on February 26 changed in proportion to the share price increase (or decrease).









KRX BBIG K-New Deal Index
Ticker
Weight
Market cap
30-day average daily trade value


LG Chem Ltd
051910
7.58%
₩58,026.9B
₩254.2B


Samsung SDI Co Ltd
006400
7.86%
₩46,347.3B
₩181.5B


SK Innovation Co Ltd
096770
8.42%
₩25,613.0B
₩228.0B


Samsung Biologics Co Ltd
207940
8.85%
₩55,313.9B
₩196.2B


Celltrion, Inc.
068270
7.19%
₩33,625.7B
₩164.3B


SK Biopharmaceuticals Co Ltd
326030
8.30%
₩9,984.9B
₩41.1B


Kakao Corp
035720
13.13%
₩68,809.1B
₩405.9B


Naver Corp
035420
8.53%
₩65,376.8B
₩245.8B


Duzon Bizon Co Ltd
012510
6.38%
₩2,530.4B
₩17.5B


NCSoft Corp
036570
7.02%
₩17,958.4B
₩74.0B


Netmarble Corp
251270
8.49%
₩11,560.7B
₩46.2B


Kakao Games Corp
293490
8.44%
₩4,305.6B
₩30.4B

Source: KRX











KRX Secondary Battery K-New Deal Index
Ticker
Weight
Market cap
30-day average daily trade value


LG Chem Ltd
051910
23.22%
₩58,026.9B
₩254.2B


Samsung SDI Co Ltd
006400
24.07%
₩46,347.3B
₩181.5B


SK Innovation Co Ltd
096770
25.79%
₩25,613.0B
₩228.0B


Posco Chemical Co Ltd
003670
7.83%
₩9,117.7B
₩38.9B


SKC Co Ltd
011790
5.53%
₩5,509.8B
₩50.1B


Ecopro BM Co Ltd
247540
3.87%
₩4,546.1B
₩26.3B


Iljin Materials Co Ltd
020150
2.77%
₩3,255.4B
₩15.5B


L&amp;F Co., Ltd.
066970
2.85%
₩2,625.4B
₩41.6B


SoulBrain Co Ltd
357780
2.58%
₩2,568.5B
₩9.4B


Chunbo Co Ltd
278280
1.50%
₩1,853.0B
₩9.2B

Source: KRX











KRX Bio K-New Deal Index
Ticker
Weight
Market cap
30-day average daily trade value


Samsung Biologics Co Ltd
207940
27.57%
₩55,313.9B
₩196.2B


Celltrion, Inc.
068270
22.41%
₩33,625.7B
₩164.3B


Celltrion HealthCare Co Ltd
091990
10.79%
₩18,490.4B
₩107.9B


SK Biopharmaceuticals Co Ltd
326030
25.87%
₩9,984.9B
₩41.1B


Celltrion Pharm Inc
068760
2.39%
₩5,653.7B
₩36.5B


Hanmi Science Co Ltd
008930
1.41%
₩4,691.1B
₩15.9B


Yuhan Corp
000100
3.16%
₩4,478.3B
₩16.2B


Shinpoong Pharmaceutical Co Ltd
019170
2.66%
₩4,339.5B
₩216.5B


Green Cross Corp
006280
1.61%
₩3,728.0B
₩52.2B


Seegene Inc
096530
2.12%
₩3,352.9B
₩58.6B

Source: KRX











KRX Internet K-New Deal Index
Ticker
Weight
Market cap
30-day average daily trade value


Kakao Corp
035720
36.25%
₩68,809.1B
₩405.9B


Naver Corp
035420
23.55%
₩65,376.8B
₩245.8B


Duzon Bizon Co Ltd
012510
17.42%
₩2,530.4B
₩17.5B


KMW Co Ltd
032500
6.74%
₩2,289.7B
₩15.6B


NHN KCP Corp
060250
3.60%
₩1,450.6B
₩6.5B


AfreecaTV Co Ltd
067160
4.14%
₩1,249.5B
₩13.4B


Ace Technologies Corp.
088800
2.65%
₩852.8B
₩12.2B


Seojin System Co Ltd
178320
2.55%
₩839.0B
₩8.8B


Ahnlab Inc
053800
1.95%
₩720.0B
₩6.4B


Rsupport Co Ltd
131370
1.15%
₩470.9B
₩2.7B

Source: KRX











KRX Game K-New Deal Index
Ticker
Weight
Market cap
30-day average daily trade value


NCSoft Corp
036570
21.23%
₩17,958.4B
₩74.0B


Netmarble Corp
251270
26.10%
₩11,560.7B
₩46.2B


PearlAbyss Corp
263750
8.85%
₩4,410.4B
₩12.2B


Kakao Games Corp
293490
25.95%
₩4,305.6B
₩30.4B


Com2uS Corp
078340
4.92%
₩1,688.1B
₩31.4B


NHN Corp
181710
3.38%
₩1,543.7B
₩5.7B


Doubleu Games Co Ltd
192080
2.55%
₩1,205.2B
₩7.1B


Webzen Inc
069080
3.05%
₩1,145.8B
₩9.8B


Wemade Co Ltd
112040
2.16%
₩971.0B
₩10.1B


Neptune Co
217270
1.81%
₩819.8B
₩4.1B

Source: KRX



KRX BBIG Index Rebalancing Preview: SK IE Tech, SK Bioscience, Krafton, Kakao Games, & Pearl Abyss

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<p>The KRX will announce the results of the September review of the BBIG indices in August and the changes will become effective after the close of trading on 9 September.</p><p>The BBIG (secondary <strong>B</strong>attery, <strong>B</strong>io, <strong>I</strong>nternet and <strong>G</strong>aming sectors) indices were launched late last year. ETFs were subsequently launched on the 5 indices and the BBIG ETF and the Secondary Battery ETF have gathered a significant amount of assets since then.</p><p>At the September rebalance we expect the following changes:</p><ul>
<li>Secondary Battery ETF: <a href="https://www.smartkarma.com/entities/sk-ie-technology" target="_blank" data-smartkarma-citation="entities:29207:1" rel="noopener">SK IE Technology (361610 KS)</a> replaces <a href="https://www.smartkarma.com/entities/chunbo-co-ltd" target="_blank" data-smartkarma-citation="entities:27848:1" rel="noopener">Chunbo Co Ltd (278280 KS)</a>
</li>
<li>Bio ETF: <a href="https://www.smartkarma.com/entities/sk-bioscience-co-ltd" target="_blank" data-smartkarma-citation="entities:31484:1" rel="noopener">SK Bioscience (302440 KS)</a> joins the index and the top 3 stocks. This moves <a href="https://www.smartkarma.com/entities/sk-biopharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:28966:1" rel="noopener">SK Biopharmaceuticals Co Ltd (326030 KS)</a> to the plus group; <a href="https://www.smartkarma.com/entities/hanmi-pharm-co-ltd" target="_blank" data-smartkarma-citation="entities:12476:1" rel="noopener">Hanmi Pharm (128940 KS)</a> joins the index and <a href="https://www.smartkarma.com/entities/seegene-inc" target="_blank" data-smartkarma-citation="entities:11483:1" rel="noopener">Seegene Inc (096530 KS)</a> and <a href="https://www.smartkarma.com/entities/green-cross-corp" target="_blank" data-smartkarma-citation="entities:2969:1" rel="noopener">Green Cross (006280 KS)</a> are deleted.</li>
<li>Internet ETF: <a href="https://www.smartkarma.com/entities/kg-inicis-co-ltd" target="_blank" data-smartkarma-citation="entities:5234:1" rel="noopener">KG Inicis Co Ltd (035600 KS)</a> replaces <a href="https://www.smartkarma.com/entities/rsupport-co-ltd" target="_blank" data-smartkarma-citation="entities:14783:1" rel="noopener">Rsupport Co Ltd (131370 KS)</a> </li>
<li>Game ETF: <a href="https://www.smartkarma.com/entities/devsisters-co-ltd" target="_blank" data-smartkarma-citation="entities:14096:1" rel="noopener">Devsisters (194480 KS)</a> replaces <a href="https://www.smartkarma.com/entities/neptune-company" target="_blank" data-smartkarma-citation="entities:28826:1" rel="noopener">Neptune Company (217270 KS)</a>.</li>
<li>BBIG ETF: <a href="https://www.smartkarma.com/entities/sk-bioscience-co-ltd" target="_blank" data-smartkarma-citation="entities:31484:1" rel="noopener">SK Bioscience (302440 KS)</a> replaces <a href="https://www.smartkarma.com/entities/sk-biopharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:28966:1" rel="noopener">SK Biopharmaceuticals Co Ltd (326030 KS)</a> </li>
</ul><p>There could be more interesting changes if <a href="https://www.smartkarma.com/entities/krafton-inc" target="_blank" data-smartkarma-citation="entities:28956:1" rel="noopener"> Krafton Inc (1486402D KS)</a> lists before end July as expected.</p><p>The first rebalance of the index took place in February this year and the inclusions outperformed the exclusions by nearly 8% between announcement of the changes and implementation. So this rebalance is something worth looking at.</p>

The KRX will announce the results of the September review of the BBIG indices in August and the changes will become effective after the close of trading on 9 September.The BBIG (secondary Battery, Bio, Internet and Gaming sectors) indices were launched late last year. ETFs were subsequently launched on the 5 indices and the BBIG ETF and the Secondary Battery ETF have gathered a significant amount of assets since then.At the September rebalance we expect the following changes:
Secondary Battery ETF: SK IE Technology (361610 KS) replaces Chunbo Co Ltd (278280 KS)

Bio ETF: SK Bioscience (302440 KS) joins the index and the top 3 stocks. This moves SK Biopharmaceuticals Co Ltd (326030 KS) to the plus group; Hanmi Pharm (128940 KS) joins the index and Seegene Inc (096530 KS) and Green Cross (006280 KS) are deleted.
Internet ETF: KG Inicis Co Ltd (035600 KS) replaces Rsupport Co Ltd (131370 KS) 
Game ETF: Devsisters (194480 KS) replaces Neptune Company (217270 KS).
BBIG ETF: SK Bioscience (302440 KS) replaces SK Biopharmaceuticals Co Ltd (326030 KS) 
There could be more interesting changes if  Krafton Inc (1486402D KS) lists before end July as expected.The first rebalance of the index took place in February this year and the inclusions outperformed the exclusions by nearly 8% between announcement of the changes and implementation. So this rebalance is something worth looking at.

KRX BBIG Index Rebalance Preview: Worth a Look

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<p>Krafton announced its IPO price range of 458,000 won to 557,000 won. There will be 10 million shares offered in this IPO including 7 million new shares and 3 million old shares. At the high end of the IPO price range, the company would be raising 5.6 trillion won ($5 billion). This would be the biggest ever amount of money raised in Korea for an IPO since Samsung Life Insurance when it raised 4.8 trillion won in 2010. </p><p>According to the bankers' valuation, the expected market cap of the company is expected to be from 23.7 trillion won to 28.8 trillion won. The book building for the institutional investors starts on 28 June 2021.  </p><table class="table table-striped">
<colgroup>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td style="width: 208pt;">Deal Specifics of the Krafton IPO:</td>
<td style="width: 278pt;"> </td>
</tr>
<tr>
<td>Lead underwriters of the IPO: </td>
<td style="width: 278pt;">Mirae Asset Daewoo Securities, Credit Suisse, NH Investment Securities, Citi Global Markets Securities, JP Morgan </td>
</tr>
<tr>
<td>Expected IPO price per share: </td>
<td style="width: 278pt;">458,000 won (low)/557,000 won (high)</td>
</tr>
<tr>
<td>Number of Shares for IPO:</td>
<td style="width: 278pt;">10m shares (7m new shares; 3m old shares)</td>
</tr>
<tr>
<td>IPO base deal size: </td>
<td style="width: 278pt;">US$4.1 bn (low);  US$5.0 bn (high)</td>
</tr>
<tr>
<td>Expected common shares outstanding, fully diluted (post-IPO):  </td>
<td style="width: 278pt;">51.766 m shares</td>
</tr>
<tr>
<td>Expected market cap after IPO:</td>
<td style="width: 278pt;">23.7 trillion won (low)/28.8 trillion won (high)</td>
</tr>
<tr>
<td>Book open: </td>
<td style="text-align: left; width: 278pt;">28-Jun-21</td>
</tr>
<tr>
<td>Book closed:</td>
<td style="text-align: left; width: 278pt;">9-Jul-21</td>
</tr>
<tr>
<td>Listing date: </td>
<td style="text-align: left; width: 278pt;">22-Jul-21</td>
</tr>
<tr>
<td>Source: Company data</td>
<td> </td>
</tr>
</tbody>
</table>

Krafton announced its IPO price range of 458,000 won to 557,000 won. There will be 10 million shares offered in this IPO including 7 million new shares and 3 million old shares. At the high end of the IPO price range, the company would be raising 5.6 trillion won ($5 billion). This would be the biggest ever amount of money raised in Korea for an IPO since Samsung Life Insurance when it raised 4.8 trillion won in 2010. According to the bankers' valuation, the expected market cap of the company is expected to be from 23.7 trillion won to 28.8 trillion won. The book building for the institutional investors starts on 28 June 2021.  






Deal Specifics of the Krafton IPO:
 


Lead underwriters of the IPO: 
Mirae Asset Daewoo Securities, Credit Suisse, NH Investment Securities, Citi Global Markets Securities, JP Morgan 


Expected IPO price per share: 
458,000 won (low)/557,000 won (high)


Number of Shares for IPO:
10m shares (7m new shares; 3m old shares)


IPO base deal size: 
US$4.1 bn (low);  US$5.0 bn (high)


Expected common shares outstanding, fully diluted (post-IPO):  
51.766 m shares


Expected market cap after IPO:
23.7 trillion won (low)/28.8 trillion won (high)


Book open: 
28-Jun-21


Book closed:
9-Jul-21


Listing date: 
22-Jul-21


Source: Company data
 




Event-Driven

<p>Korea's local sector ETFs do not usually attract the spotlight as most of them are pretty insignificant in AUM. But a few sector index-mirroring ETFs are quite different. They are as hot as the flagship KOSPI 200-tracking ETFs.</p><p>The secondary battery sector ETFs are these exceptions. The extreme popularity of the secondary battery sector-ETFs bodes well for the level of investor interest sitting on the sector itself.</p><h2>How hot are they really?</h2><div>
<p>For instance, let's look at the KRX K-New Deal Index.</p>
<p>It has one mother index named the KRX BBIG K-New Deal Index, under which there are four sub-indices. BBIG stands for Battery, Bio, Internet, and Game, representing the four sectors that the New Deal initiative features.</p>
<div>
<p>The main index contains 12 large-cap stocks, three of which are from each of the four sectors. We then have four sub-indices, one for each sector. Each sub-index has 10 constituents, selected mainly based on the full market capitalization.</p>
<p>The mother index has three ETFs, and each of the four sub-indices has one ETF. The mother index's combined AUM stands at ₩529.2B at the last close. But the sub-index for the secondary battery has a total of ₩812.8B in AUM, substantially more than the mother index and simply incomparable to the other three sub-indices.</p>
</div>
</div><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"K-New Deal tracking ETFs"}'>K-New Deal tracking ETFs</td>
<td style="width: 189.531px;" data-sheets-value='{"1":2,"2":"Index"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Index</td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"Ticker"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Ticker</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":2,"2":"Market cap"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Market cap</td>
</tr>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"Mirae Asset TIGER KRX BBIG K-New Deal ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Mirae Asset TIGER KRX BBIG K-New Deal ETF</td>
<td colspan="1" rowspan="4" style="width: 189.531px;" data-sheets-value='{"1":2,"2":"KRX BBIG K-New Deal Index"}' data-sheets-numberformat='{"1":1}'><div><strong>KRX BBIG K-New Deal Index</strong></div></td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"364960"}' data-sheets-numberformat='{"1":1}' data-sheets-formula='="364960"'>364960</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":497.352}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000">₩497.4B</td>
</tr>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"Hana Financial Investment Hana KRX BBIG K-New Deal ETN 3"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Hana Financial Investment Hana KRX BBIG K-New Deal ETN 3</td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"700003"}' data-sheets-numberformat='{"1":1}' data-sheets-formula='="700003"'>700003</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":9.63}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000">₩9.6B</td>
</tr>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"TIMEFOLIO TIMEFOLIO BBIG Active ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>TIMEFOLIO TIMEFOLIO BBIG Active ETF</td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"385710"}' data-sheets-numberformat='{"1":1}' data-sheets-formula='="385710"'>385710</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":22.231}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000">₩22.2B</td>
</tr>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":" - Total"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'><strong>- Total</strong></td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":1}'><strong>-</strong></td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":529.213}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=sum(R[-3]C[0]:R[-1]C[0])"><strong>₩529.2B</strong></td>
</tr>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"Mirae TIGER KRX Secondary Battery K-New Deal ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Mirae TIGER KRX Secondary Battery K-New Deal ETF</td>
<td style="width: 189.531px;" data-sheets-value='{"1":2,"2":"KRX Secondary Battery K-New Deal Index"}' data-sheets-numberformat='{"1":1}'><strong>KRX Secondary Battery K-New Deal Index</strong></td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"364980"}' data-sheets-numberformat='{"1":1}' data-sheets-formula='="364980"'>364980</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":812.80425}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000"><strong>₩812.8B</strong></td>
</tr>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"Mirae Asset TIGER KRX BIO K-New Deal ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Mirae Asset TIGER KRX BIO K-New Deal ETF</td>
<td style="width: 189.531px;" data-sheets-value='{"1":2,"2":"KRX Bio K-New Deal Index"}' data-sheets-numberformat='{"1":1}'><strong>KRX Bio K-New Deal Index</strong></td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"364970"}' data-sheets-numberformat='{"1":1}' data-sheets-formula='="364970"'>364970</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":85.51125}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000"><strong>₩85.5B</strong></td>
</tr>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"Mirae Asset KRX TIGER Internet K-New Deal ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Mirae Asset KRX TIGER Internet K-New Deal ETF</td>
<td style="width: 189.531px;" data-sheets-value='{"1":2,"2":"KRX Internet K-New Deal Index"}' data-sheets-numberformat='{"1":1}'><strong>KRX Internet K-New Deal Index</strong></td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"365000"}' data-sheets-numberformat='{"1":1}' data-sheets-formula='="365000"'>365000</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":45.1605}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000"><strong>₩45.2B</strong></td>
</tr>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"Mirae Asset KRX TIGER Game K-New Deal ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Mirae Asset KRX TIGER Game K-New Deal ETF</td>
<td style="width: 189.531px;" data-sheets-value='{"1":2,"2":"KRX Game K-New Deal Index"}' data-sheets-numberformat='{"1":1}'><strong>KRX Game K-New Deal Index</strong></td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"364990"}' data-sheets-numberformat='{"1":1}' data-sheets-formula='="364990"'>364990</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":36.208}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000"><strong>₩36.2B</strong></td>
</tr>
<tr><td colspan="4" rowspan="1" style="width: 726.008px;" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><h2>How substantial is the flow impact?</h2><p>We have three major secondary battery ETFs, with a combined AUM of close to ₩3T.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Name"}'>Name</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Samsung KODEX Secondary Battery Industry ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Samsung KODEX Secondary Battery Industry ETF</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Mirae Asset TIGER Secondary Cell ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Mirae Asset TIGER Secondary Cell ETF</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Mirae TIGER KRX Secondary Battery K-New Deal ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Mirae TIGER KRX Secondary Battery K-New Deal ETF</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Market cap"}'><strong>Market cap</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1233.609}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]/1000000000"><strong>₩1,233.6B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":873.704}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]/1000000000"><strong>₩873.7B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":812.80425}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]/1000000000"><strong>₩812.8B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Underlying index"}'>Underlying index</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"FnGuide Secondary Battery Industry Index"}'>FnGuide Secondary Battery Industry Index</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"WISE Secondary Battery Theme Index"}'>WISE Secondary Battery Theme Index</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"KRX Secondary Battery K-New Deal Index"}'><div><div>KRX Secondary Battery K-New Deal Index</div></div></td>
</tr>
<tr><td colspan="4" data-sheets-value='{"1":2,"2":"Source: KRX &amp; FnGuide Index"}'>Source: KRX &amp; FnGuide Index</td></tr>
</tbody>
</table><div>
<p>These are 4 major constituents making all three indices.</p>
<table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"4 major constituents making all the three indices"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>4 major constituents making all three indices</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Samsung KODEX Secondary Battery Industry ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Samsung KODEX Secondary Battery Industry ETF</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Mirae Asset TIGER Secondary Cell ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Mirae Asset TIGER Secondary Cell ETF</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Mirae TIGER KRX Secondary Battery K-New Deal ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Mirae TIGER KRX Secondary Battery K-New Deal ETF</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"SK Innovation Co Ltd"}'>SK Innovation Co Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1713}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-7]">17.13%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.11449999999999999}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-6]">11.45%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2641}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-5]">26.41%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Posco Chemical Co Ltd"}'><strong>Posco Chemical Co Ltd</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.165}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-7]"><strong>16.50%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0877}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[3]C[-6]"><strong>8.77%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0796}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[2]C[-5]"><strong>7.96%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"LG Chem Ltd"}'>LG Chem Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1596}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-7]">15.96%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0984}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-1]C[-6]">9.84%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2395}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-1]C[-5]">23.95%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Samsung SDI Co Ltd"}'>Samsung SDI Co Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1318}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-7]">13.18%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.09210000000000002}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-6]">9.21%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2296}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-1]C[-5]">22.96%</td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX &amp; FnGuide Index"}'>Source: KRX &amp; FnGuide Index</td></tr>
</tbody>
</table>
<p>As seen below, these three ETFs spark at least as much a passive flow as the KOSPI 200 if we factor in only passive funds making rebalancing trade on the implementation day. As for Posco Chemical, the three ETFs combined passive flow is nearly 6 times KOSPI 200.</p>
<table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Name"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Name</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Three sector ETFs combined passive flow"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Three ETFs combined passive flow</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"KOSPI 200 passive flow, assuming ₩20T worth of ETFs/index funds making rebalancing trade on the implementation day"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>KOSPI 200 passive flow, assuming ₩20T worth of ETFs/index funds making rebalancing trade on the implementation day</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"KOSPI 200 weight"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>KOSPI 200 weight</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"SK Innovation Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[10], "name")'>SK Innovation Co Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":526.017932125}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[3]+R[0]C[5]+R[0]C[7]">₩526.0B</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩218.0B"}'>₩218.0B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0109}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>1.09%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Posco Chemical Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[10], "name")'><strong>Posco Chemical Co Ltd</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":344.86854409999995}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[3]+R[0]C[5]+R[0]C[7]"><strong>₩344.9B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩60.0B"}'><strong>₩60.0B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.003}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'><strong>0.30%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"LG Chem Ltd"}' data-sheets-formula='=googlefinance(R[0]C[10], "name")'>LG Chem Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":477.52308787499993}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[3]+R[0]C[5]+R[0]C[7]">₩477.5B</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩580.0B"}'>₩580.0B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.029}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>2.90%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Samsung SDI Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[10], "name")'>Samsung SDI Co Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":429.67766040000004}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[3]+R[0]C[5]+R[0]C[7]">₩429.7B</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩490.0B"}'>₩490.0B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0245}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>2.45%</td>
</tr>
<tr><td colspan="4" data-sheets-value='{"1":2,"2":"Source: KRX &amp; FnGuide Index"}'>Source: KRX &amp; FnGuide Index</td></tr>
</tbody>
</table>
</div>

Korea's local sector ETFs do not usually attract the spotlight as most of them are pretty insignificant in AUM. But a few sector index-mirroring ETFs are quite different. They are as hot as the flagship KOSPI 200-tracking ETFs.The secondary battery sector ETFs are these exceptions. The extreme popularity of the secondary battery sector-ETFs bodes well for the level of investor interest sitting on the sector itself.How hot are they really?
For instance, let's look at the KRX K-New Deal Index.
It has one mother index named the KRX BBIG K-New Deal Index, under which there are four sub-indices. BBIG stands for Battery, Bio, Internet, and Game, representing the four sectors that the New Deal initiative features.

The main index contains 12 large-cap stocks, three of which are from each of the four sectors. We then have four sub-indices, one for each sector. Each sub-index has 10 constituents, selected mainly based on the full market capitalization.
The mother index has three ETFs, and each of the four sub-indices has one ETF. The mother index's combined AUM stands at ₩529.2B at the last close. But the sub-index for the secondary battery has a total of ₩812.8B in AUM, substantially more than the mother index and simply incomparable to the other three sub-indices.










K-New Deal tracking ETFs
Index
Ticker
Market cap


Mirae Asset TIGER KRX BBIG K-New Deal ETF
KRX BBIG K-New Deal Index
364960
₩497.4B


Hana Financial Investment Hana KRX BBIG K-New Deal ETN 3
700003
₩9.6B


TIMEFOLIO TIMEFOLIO BBIG Active ETF
385710
₩22.2B


- Total
-
₩529.2B


Mirae TIGER KRX Secondary Battery K-New Deal ETF
KRX Secondary Battery K-New Deal Index
364980
₩812.8B


Mirae Asset TIGER KRX BIO K-New Deal ETF
KRX Bio K-New Deal Index
364970
₩85.5B


Mirae Asset KRX TIGER Internet K-New Deal ETF
KRX Internet K-New Deal Index
365000
₩45.2B


Mirae Asset KRX TIGER Game K-New Deal ETF
KRX Game K-New Deal Index
364990
₩36.2B

Source: KRX

How substantial is the flow impact?We have three major secondary battery ETFs, with a combined AUM of close to ₩3T.








Name
Samsung KODEX Secondary Battery Industry ETF
Mirae Asset TIGER Secondary Cell ETF
Mirae TIGER KRX Secondary Battery K-New Deal ETF


Market cap
₩1,233.6B
₩873.7B
₩812.8B


Underlying index
FnGuide Secondary Battery Industry Index
WISE Secondary Battery Theme Index
KRX Secondary Battery K-New Deal Index

Source: KRX &amp; FnGuide Index


These are 4 major constituents making all three indices.









4 major constituents making all three indices
Samsung KODEX Secondary Battery Industry ETF
Mirae Asset TIGER Secondary Cell ETF
Mirae TIGER KRX Secondary Battery K-New Deal ETF


SK Innovation Co Ltd
17.13%
11.45%
26.41%


Posco Chemical Co Ltd
16.50%
8.77%
7.96%


LG Chem Ltd
15.96%
9.84%
23.95%


Samsung SDI Co Ltd
13.18%
9.21%
22.96%

Source: KRX &amp; FnGuide Index


As seen below, these three ETFs spark at least as much a passive flow as the KOSPI 200 if we factor in only passive funds making rebalancing trade on the implementation day. As for Posco Chemical, the three ETFs combined passive flow is nearly 6 times KOSPI 200.









Name
Three ETFs combined passive flow
KOSPI 200 passive flow, assuming ₩20T worth of ETFs/index funds making rebalancing trade on the implementation day
KOSPI 200 weight


SK Innovation Co Ltd
₩526.0B
₩218.0B
1.09%


Posco Chemical Co Ltd
₩344.9B
₩60.0B
0.30%


LG Chem Ltd
₩477.5B
₩580.0B
2.90%


Samsung SDI Co Ltd
₩429.7B
₩490.0B
2.45%

Source: KRX &amp; FnGuide Index




Passive Flow Estimations of Two TIGER ETFs on SK IE Tech on Rebalancing Implementation Day

SK IE Technology and LG Chem soared abruptly between 3:20 and 3:30 pm during the simultaneous bids and offers trade period. During this 10-minute period, SK IE Technology's daily gain rose from 3.51% to 10.53%. LG Chem also rose sharply from 2.97% to 5.33%.Why did this happen?The local street believes that the stock prices have moved significantly in such a short period of time as Samsung Asset Management newly added SK IE Technology to its secondary battery sector ETF and increased the weighting of LG Chem in the same ETF.Local ETFs tracking secondary battery sectorKorea currently has three ETFs specifically tracking the local secondary battery sector. The biggest one is Samsung KODEX Secondary Battery Industry ETF, mirroring the FnGuide Secondary Battery Industry Index. It now features a market cap of ₩1,233.6B with 26 constituents.The other two ETFs aren't too far behind by market cap. They are both Mirae Asset TIGER ETFs. One tracks the WISE Secondary Battery Them Index containing 26 constituents. The other one mirrors the government-initiated K-New Deal Index, which has 10 constituents.







Local secondary battery sector ETFs

Name
Samsung KODEX Secondary Battery Industry ETF
Mirae Asset TIGER Secondary Cell ETF
Mirae TIGER KRX Secondary Battery K-New Deal ETF


Ticker
305720
305540
364980


Manager
Samsung Asset Management
Mirae Asset Management
Mirae Asset Management


Market cap
₩1,233.6B
₩873.7B
₩812.8B


Underlying index
FnGuide Secondary Battery Industry Index
WISE Secondary Battery Theme Index
KRX Secondary Battery K-New Deal Index


Constituents
25
26
10

Source: KRX &amp; FnGuide Index

Portfolio Deposit File (PDF)Below is the full list of the constituents of the three ETFs with index weight as of last Friday. It seems that Samsung KODEX hasn't fully updated the constituent list of its Secondary Battery Sector Index ETF. It is presumably because most of the trades took place during the simultaneous bids and offers trade period, meaning that the trades were completed and reflected after 3:30 pm. Samsung KODEX updates the portfolio deposit file (PDF) of its ETFs at 3:30 pm of each day.










Samsung KODEX Secondary Battery Industry ETF
Weight
Mirae Asset TIGER Secondary Cell ETF
Weight
Mirae TIGER KRX Secondary Battery K-New Deal ETF
Weight


SK Innovation
17.13%
SK Innovation
11.45%
SK Innovation
26.41%


Posco Chemical
16.50%
LG Chem
9.84%
LG Chem
23.95%


LG Chem
15.96%
SKC
9.66%
Samsung SDI
22.96%


Samsung SDI
13.18%
Samsung SDI
9.21%
Posco Chemical
7.96%


Ecopro
8.35%
Posco Chemical
8.77%
SKC Co
5.22%


Ecopro HN
5.33%
Ecopro BM
6.92%
Ecopro BM
3.64%


L&amp;F
4.00%
L&amp;F
6.33%
L&amp;F
2.85%


Ecopro BM
3.94%
Iljin Materials
6.12%
Iljin Materials
2.73%


Iljin Materials
3.59%
SoulBrain
5.90%
SoulBrain
2.71%


Creative &amp; Innovative System
3.05%
Chunbo
3.14%
Chunbo
1.51%


People &amp; Technology
1.72%
Ecopro Co., Ltd.
3.06%




Foosung
1.02%
Creative &amp; Innovative System
2.49%




Cosmo Advanced Materials&amp;Technlgy
1.00%
Cosmo Advanced Materials&amp;Technlgy
2.24%




DA Technology
0.88%
Foosung
2.07%




Sang-A Frontec
0.88%
Ecopro HN
2.02%




Daejoo Electronic Materials
0.69%
Solus Advanced Materials
2.01%




Cosmo Chemical
0.42%
Daejoo Electronic Materials
1.89%




Wonik PNE
0.38%
People &amp; Technology
1.68%




mPlus
0.38%
Dongwha Enterprise
0.92%




Soulbrain Holdings
0.33%
Wonik PNE
0.91%




Philoptics
0.28%
Youlchon Chemical
0.80%




Sangsin Energy Display Precision
0.27%
CowinTech
0.71%




Shin Heung Energy &amp; Electronics
0.27%
Shin Heung Energy &amp; Electronics
0.55%




Chemtros
0.24%
mPlus
0.51%




NS
0.21%
Innometry
0.41%






Daebo Magnetic
0.27%



Source: Samsung KODEX &amp; Mirae Asset TIGER



Korea's Local Sector Index (FnGuide Secondary Battery) Rebalancing Made a Big Splash Last Friday

South Korea

SK IE Technology Co., Ltd operates as a material solution provider. The Company provides information material solutions, electronic materials solutions, and other products. SK IE Technology conducts businesses across worldwide.

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SK IE Technology (361610 KS)

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