Hyundai Motor-themed exchange-traded funds (ETFs) recorded double-digit losses during the recent 1-month period from June 22 to July 21, according to ETF CHECK data released on July 21. The decline was triggered by Hyundai Motor's stock price falling below 400,000 won for the first time in approximately 6 months, closing at 399,000 won on July 21. The stock faced pressure from concerns over US tariff burdens, sales slowdown, and weakening expectations for second-quarter earnings. These ETFs were launched during the second quarter, focusing on Hyundai Motor Group's future growth potential in robotics, artificial intelligence (AI), and autonomous driving technologies.
Hyundai Motor-Themed ETFs Record Double-Digit Monthly Losses
ACE K Humanoid Robot Industry TOP2+ recorded the steepest loss at -31.22% during the recent 1-month period. RISE Hyundai Motor Fixed Physical AI followed with -30.08%, while KODEX Hyundai Motor Robotics Value Chain TOP3 Plus declined -22.29%. ACE K Humanoid Robot Industry TOP2+ holds approximately 20% each in Hyundai Motor and Robotis, along with Hyundai Mobis and Hyundai AutoEver, targeting investment in Hyundai Motor Group's humanoid ecosystem. RISE Hyundai Motor Fixed Physical AI allocates approximately 25% to Hyundai Motor and invests in 14 stocks related to physical AI including autonomous driving, robotics, and factory automation. KODEX Hyundai Motor Robotics Value Chain TOP3 Plus concentrates up to 75% or more across three core stocks—Hyundai Motor, Kia, and Hyundai Mobis—with 25% allocation each.
Hyundai Motor Stock Closes Below 400,000 Won
Hyundai Motor closed at 399,000 won on July 21, breaking below the 400,000 won level for the first time in approximately 6 months. The stock decline reflected concerns over US tariff burdens, sales slowdown, and lowered expectations for second-quarter earnings. Asset management firms had competitively launched these ETFs, positioning Hyundai Motor's humanoid robots, robotics, and autonomous driving as future growth drivers, similar to their earlier focus on semiconductor products like Samsung Electronics and SK Hynix.
KB Securities Lowers Hyundai Motor Target Price to 900,000 Won
KB Securities lowered Hyundai Motor's target price from 1,200,000 won to 900,000 won on July 21. The adjustment reflected expectations that second-quarter operating profit would fall below market estimates and a slight downward revision to annual earnings forecasts. The brokerage cited weaker-than-expected wholesale sales volume excluding China, production disruptions from a domestic parts supplier fire, and construction of an electric vehicle production line at the Turkey plant. Analyst Kang Sung-jin stated the target price adjustment incorporated shortened valuation periods reflecting recent market volatility expansion, while maintaining that Hyundai Motor Group has high potential to become the number one player in the industrial humanoid market by 2035, as humanoid demand is expected to expand in earnest after 2028 due to declining working-age population.
Mixed-Type ETFs with Bonds Show Relatively Better Performance
Mixed-type ETFs combining Hyundai Motor stocks with bonds demonstrated relatively better performance. 1Q Hyundai Motor Kia Bond Mixed 50 recorded -10.69% over the recent 1-month period, while WON Samsung Electronics Hyundai Motor Bond Mixed 50 posted -16.39%. The structure of reducing equity allocation to approximately half and including bonds absorbed some volatility during the recent market decline.
FAQ
Q: What caused Hyundai Motor-themed ETFs to decline over 30% in the recent month?
A: ACE K Humanoid Robot Industry TOP2+ declined -31.22% and RISE Hyundai Motor Fixed Physical AI fell -30.08% during the recent 1-month period from June 22 to July 21. The losses were directly linked to Hyundai Motor's stock price falling below 400,000 won, driven by concerns over US tariff burdens, sales slowdown, and weakening second-quarter earnings expectations.
Q: Why did KB Securities lower Hyundai Motor's target price to 900,000 won?
A: KB Securities reduced the target price from 1,200,000 won to 900,000 won on July 21, citing expectations that second-quarter operating profit would fall below market estimates. The adjustment reflected weaker-than-expected wholesale sales volume excluding China, production disruptions from a domestic parts supplier fire, and construction of an electric vehicle production line at the Turkey plant.
