Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

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Clepsydra Capital

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

Event-Driven

<p>The quarterly rebalancing of the WISE Secondary Cell Index is this Friday. So, rebalancing trading takes place this Thursday at the close.</p><div class="content-highlight"><ul>
<li><strong>The TIGER ETF (305540) is the only ETF that tracks this index. However, the recent AUM has risen sharply, and as of yesterday's closing price, the AUM is approaching KRW 1 trillion.</strong></li>
<li><strong>There is no add (or delete) in this rebalancing that will cause a substantial passive impact like SKIET in the previous rebalancing.</strong></li>
<li><strong>But the AUM is massive, so the level of stock price fluctuations potentially resulting from index weight changes is expected to be large enough to deserve our attention.</strong></li>
</ul></div><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Index summary"}'>Index summary</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Index name"}'>Index name</td>
<td data-sheets-value='{"1":2,"2":"Wise Secondary Cell"}'><div><div>Wise Secondary Cell</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"ETF"}'>ETF</td>
<td data-sheets-value='{"1":2,"2":"Mirae Asset TIGER Secondary Cell ETF"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'><div><div>Mirae Asset TIGER Secondary Cell ETF</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td data-sheets-value='{"1":2,"2":"305540"}' data-sheets-formula='="305540"'>305540</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"AUM"}'><strong>AUM</strong></td>
<td data-sheets-value='{"1":3,"3":999.267}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}' data-sheets-formula="=R[1]C[0]*R[2]C[0]/1000000000"><strong>₩999.3B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"SO"}'><strong>SO</strong></td>
<td data-sheets-value='{"1":3,"3":44650000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'><strong>44,650,000</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Number of constituents"}'>Number of constituents</td>
<td data-sheets-value='{"1":3,"3":26}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>26</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Weight type"}'>Weight type</td>
<td data-sheets-value='{"1":2,"2":"Float-adjusted market cap"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div>Float-adjusted market cap</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Cap"}'>Cap</td>
<td data-sheets-value='{"1":3,"3":0.1}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>10.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Rebalancing cycle"}'>Rebalancing cycle</td>
<td data-sheets-value='{"1":2,"2":"Quarterly"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'>Quarterly</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Rebalancing month"}'>Rebalancing month</td>
<td data-sheets-value='{"1":2,"2":"January, April, July, and October"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div>January, April, July, and October</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Announcement date"}'>Announcement date</td>
<td data-sheets-value='{"1":2,"2":"Only ETF operator is notified"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div>Only ETF operator is notified</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Implementation date"}'>Implementation date</td>
<td data-sheets-value='{"1":2,"2":"The trading day following the option expiration dates"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div>The trading day following the option expiration dates</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Next implementation date"}'>Next implementation date</td>
<td data-sheets-value='{"1":2,"2":"October 15, 2021"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div>October 15, 2021</div></div></td>
</tr>
<tr><td colspan="2"><div><div></div></div></td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Rebalancing trading"}'><strong>Rebalancing trading</strong></td>
<td data-sheets-value='{"1":2,"2":"At the close on October 14, 2021"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div><strong>At the close on October 14, 2021</strong></div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Screening base date"}'><strong>Screening base date</strong></td>
<td data-sheets-value='{"1":2,"2":"The last trading day of the month preceding the date of regular rebalancing"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div><strong>The last trading day of the month preceding the date of regular rebalancing</strong></div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Screening period"}'><strong>Screening period</strong></td>
<td data-sheets-value='{"1":2,"2":"The three months preceding the screening base date"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div><strong>The three months preceding the screening base date</strong></div></div></td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: KRX &amp; TIGER ETF"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=PDF!R[9]C[0]">Source: KRX &amp; TIGER ETF</td></tr>
</tbody>
</table>

The quarterly rebalancing of the WISE Secondary Cell Index is this Friday. So, rebalancing trading takes place this Thursday at the close.
The TIGER ETF (305540) is the only ETF that tracks this index. However, the recent AUM has risen sharply, and as of yesterday's closing price, the AUM is approaching KRW 1 trillion.
There is no add (or delete) in this rebalancing that will cause a substantial passive impact like SKIET in the previous rebalancing.
But the AUM is massive, so the level of stock price fluctuations potentially resulting from index weight changes is expected to be large enough to deserve our attention.






Index summary

Index name
Wise Secondary Cell


ETF
Mirae Asset TIGER Secondary Cell ETF


Ticker
305540


AUM
₩999.3B


SO
44,650,000


Number of constituents
26


Weight type
Float-adjusted market cap


Cap
10.00%


Rebalancing cycle
Quarterly


Rebalancing month
January, April, July, and October


Announcement date
Only ETF operator is notified


Implementation date
The trading day following the option expiration dates


Next implementation date
October 15, 2021



Rebalancing trading
At the close on October 14, 2021


Screening base date
The last trading day of the month preceding the date of regular rebalancing


Screening period
The three months preceding the screening base date

Source: KRX &amp; TIGER ETF



TIGER WISE Secondary Cell Index: October 14 Rabalancing Trading

Soulbrain Holdings

TIGER WISE Secondary Cell Index: October 14 Rabalancing Trading