KODEX Renewables Claims Top Spot with 48.6% 3-Month Return

The KODEX New & Renewable Energy Active ETF has achieved a remarkable 48.6% return in just three months, marking the best performance among domestic energy-related investment products. As of May 15th, the ETF posted a 1-month return of 13.1% and a 3-month return of 48.6%, the highest among 11 listed energy ETFs in Korea (excluding leverage products). It also outperformed its benchmark index (31.5%) by 17.1 percentage points in the recent three-month period and has recorded a cumulative return of 369.7% since its listing in 2021.

Fueled by these strong returns, individual investors' net purchases of the ETF reached 32.7 billion won over the past month. The combination of a global 'de-oiling' trend and a 'surge in power demand driven by AI' is increasing the attractiveness of ETFs investing in the renewable energy market. This ETF invests across the renewable energy sector, including solar power, wind power, hydrogen, and secondary batteries, as well as carbon reduction and eco-friendly technologies.

The strong performance is attributed to a portfolio strategy that increased the weighting of companies involved in 'on-site power generation' – generating electricity directly near demand centers like data centers. In the U.S., concerns over power grid shortages, coupled with global tech giants like Microsoft and Google investing in their own power generation facilities to secure electricity for data centers, are boosting growth expectations for the on-site power generation sector. Since the latter half of 2023, the KODEX New & Renewable Energy Active ETF has been increasing its exposure to key on-site power generation-related stocks such as solar power, ESS (Energy Storage Systems), and fuel cells. Companies like HD Hyundai Energy Solutions, Vinatx, and SK E&S, which are expanding their U.S. sales and aligning with government policies, have led the performance. The head of Samsung Asset Management's Operating Team 2 analyzed that the trends of energy transition policies and increasing power demand from Big Tech companies are structurally sustainable.