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

KRX BBIG Rebalancing Complete Preview: SK Bioscience, SK IE Tech, Krafton, Kakao Games, & Kakao Pay

MSCI Standard Korea QIR Adds: SKIET & Ecopro BM Exit Points

WISE Battery Index Rebalancing Trading Update (July 8)

WISE Battery Index Rebalancing: Pre-Announcement Process & Actual ETF Trading

WISE Battery Index Rebalancing: Today Status & Reverse Trading Timing for Tomorrow

Gravity Works As WeWork Doesn't; Now Plan B

Bifurcated Chinese Express Market Developing

Clepsydra Capital

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

Event-Driven

<p>As expected, the WISE Secondary Cell Index rebalancing had only one addition (SK IE Technology) and one deletion (Ecopro HN).</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 185.739px;" data-sheets-value='{"1":2,"2":"WISE Secondary Cell Index tracking ETFs"}'>WISE Secondary Cell Index tracking ETFs</td>
<td style="text-align: right; width: 102.401px;" data-sheets-value='{"1":2,"2":"Index weight on July 8"}'>Index weight on July 8</td>
<td style="text-align: right; width: 108.423px;" data-sheets-value='{"1":2,"2":"Index weight on July 9"}'>Index weight on July 9</td>
<td style="text-align: right; width: 117.457px;" data-sheets-value='{"1":2,"2":"Weight change"}'>Rebalancing weight change</td>
<td style="text-align: right; width: 116.463px;" data-sheets-value='{"1":2,"2":"Passive flow impact over 30-day ADTV"}'>Passive flow impact over 30-day ADTV</td>
<td style="text-align: right; width: 115.526px;" data-sheets-value='{"1":2,"2":"Note"}'>Note</td>
</tr>
<tr>
<td style="width: 185.739px;" data-sheets-value='{"1":2,"2":"SK IE Technology Co Ltd"}'><strong>SK IE Technology Co Ltd</strong></td>
<td style="text-align: right; width: 102.401px;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='[null,3,"0.00%",1]'>0.00%</td>
<td style="text-align: right; width: 108.423px;" data-sheets-value='{"1":3,"3":0.103}' data-sheets-numberformat='[null,3,"0.00%",1]'><strong>10.30%</strong></td>
<td style="text-align: right; width: 117.457px;" data-sheets-value='{"1":3,"3":0.103}' data-sheets-numberformat='[null,3,"0.00%p",1]'><strong>10.30%p</strong></td>
<td style="text-align: right; width: 116.463px;" data-sheets-value='{"1":3,"3":0.8322826815876188}' data-sheets-numberformat='[null,2,"#,##0.00x",1]'>0.83x</td>
<td style="text-align: right; width: 115.526px;" data-sheets-value='{"1":2,"2":"Add"}'>Add</td>
</tr>
<tr>
<td style="width: 185.739px;" data-sheets-value='{"1":2,"2":"Ecopro HN Co Ltd"}'><strong>Ecopro HN Co Ltd</strong></td>
<td style="text-align: right; width: 102.401px;" data-sheets-value='{"1":3,"3":0.0192}' data-sheets-numberformat='[null,3,"0.00%",1]'>1.92%</td>
<td style="text-align: right; width: 108.423px;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='[null,3,"0.00%",1]'><strong>0.00%</strong></td>
<td style="text-align: right; width: 117.457px;" data-sheets-value='{"1":3,"3":-0.0192}' data-sheets-numberformat='[null,3,"0.00%p",1]'><strong>-1.92%p</strong></td>
<td style="text-align: right; width: 116.463px;" data-sheets-value='{"1":3,"3":-1.410787207953604}' data-sheets-numberformat='[null,2,"#,##0.00x",1]'>-1.41x</td>
<td style="text-align: right; width: 115.526px;" data-sheets-value='{"1":2,"2":"Delete"}'>Delete</td>
</tr>
<tr><td colspan="6" rowspan="1" style="width: 746.008px;" data-sheets-value='{"1":2,"2":"Source: KRX &amp; WISE Index"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>Source: KRX &amp; WISE Index</td></tr>
</tbody>
</table><p>The WISE rechargeable battery theme index is calculated using a market capitalization-weighted method using AI keyword analysis for stocks published by securities companies. If the stock has a market cap of 10% or more, the weight is reset at the 10% ceiling in the quarterly rebalancing, which is the day after the option expiration date in January, April, July, and October.</p><p>Unlike the FnGuide Secondary Battery Industry Index, which uses a scoring system to take a more active approach to change constituent stocks, the WISE Secondary Cell Index adopts a comprehensive selection method. So, the selection of excluded stocks is not as flexible.</p><p><strong>There is currently one ETF tracking the index, with an AUM of ₩853.8B as of last Friday's close.</strong></p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" style="width: 746.008px;" data-sheets-value='{"1":2,"2":"Rebalancing schedule"}'>Index &amp; ETF summary</td></tr>
<tr>
<td style="width: 255px;" data-sheets-value='{"1":2,"2":"Rebalancing cycle"}'>Rebalancing cycle</td>
<td style="width: 491.009px;" data-sheets-value='{"1":2,"2":"Quarterly"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>Quarterly</td>
</tr>
<tr>
<td style="width: 255px;" data-sheets-value='{"1":2,"2":"Rebalancing month"}'>Rebalancing month</td>
<td style="width: 491.009px;" data-sheets-value='{"1":2,"2":"January, April, July, and October"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'><div><div>January, April, July, and October</div></div></td>
</tr>
<tr>
<td style="width: 255px;" data-sheets-value='{"1":2,"2":"Implementation date"}'>Implementation date</td>
<td style="width: 491.009px;" data-sheets-value='{"1":2,"2":"The trading day following the option expiration dates"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'><div><div>The trading day following the option expiration dates</div></div></td>
</tr>
<tr>
<td style="width: 255px;" data-sheets-value='{"1":2,"2":"Screening base date"}'>Screening base date</td>
<td style="width: 491.009px;" data-sheets-value='{"1":2,"2":"The last trading day of the month preceding the date of regular rebalancing"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'><div><div>The last trading day of the month preceding the date of regular rebalancing</div></div></td>
</tr>
<tr>
<td style="width: 255px;" data-sheets-value='{"1":2,"2":"ETF"}'><strong>ETF</strong></td>
<td style="width: 491.009px;" data-sheets-value='{"1":2,"2":"Mirae Asset TIGER Secondary Cell ETF"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[6]C[-1]"><div><div><strong>Mirae Asset TIGER Secondary Cell ETF</strong></div></div></td>
</tr>
<tr>
<td style="width: 255px;" data-sheets-value='{"1":2,"2":"Ticker"}'><strong>Ticker</strong></td>
<td style="width: 491.009px;" data-sheets-value='{"1":3,"3":305540}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[5]C[0]"><strong>305540</strong></td>
</tr>
<tr>
<td style="width: 255px;" data-sheets-value='{"1":2,"2":"AUM"}'><strong>AUM</strong></td>
<td style="width: 491.009px;" data-sheets-value='{"1":3,"3":853.828}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[4]C[1]"><strong>₩853.8B</strong></td>
</tr>
<tr><td colspan="2" style="width: 746.008px;" data-sheets-value='{"1":2,"2":"Source: KRX &amp; WISE Index"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>Source: KRX &amp; WISE Index</td></tr>
</tbody>
</table>

As expected, the WISE Secondary Cell Index rebalancing had only one addition (SK IE Technology) and one deletion (Ecopro HN).










WISE Secondary Cell Index tracking ETFs
Index weight on July 8
Index weight on July 9
Rebalancing weight change
Passive flow impact over 30-day ADTV
Note


SK IE Technology Co Ltd
0.00%
10.30%
10.30%p
0.83x
Add


Ecopro HN Co Ltd
1.92%
0.00%
-1.92%p
-1.41x
Delete

Source: KRX &amp; WISE Index

The WISE rechargeable battery theme index is calculated using a market capitalization-weighted method using AI keyword analysis for stocks published by securities companies. If the stock has a market cap of 10% or more, the weight is reset at the 10% ceiling in the quarterly rebalancing, which is the day after the option expiration date in January, April, July, and October.Unlike the FnGuide Secondary Battery Industry Index, which uses a scoring system to take a more active approach to change constituent stocks, the WISE Secondary Cell Index adopts a comprehensive selection method. So, the selection of excluded stocks is not as flexible.There is currently one ETF tracking the index, with an AUM of ₩853.8B as of last Friday's close.





Index &amp; ETF summary

Rebalancing cycle
Quarterly


Rebalancing month
January, April, July, and October


Implementation date
The trading day following the option expiration dates


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


ETF
Mirae Asset TIGER Secondary Cell ETF


Ticker
305540


AUM
₩853.8B

Source: KRX &amp; WISE Index



WISE Battery Index Rebalancing Results & What's Next in the Upcoming Rebalancing