KODEX Consumer Cyclicals ETF recorded a 28.32% return over 3 months as of the 23rd, showing strength amid Korean stock market volatility. The performance emerged as AI and semiconductor stocks underwent corrections while consumer cyclical stocks reflecting domestic consumption recovery maintained steady momentum. According to Korea Fund Ratings FundSquare, Samsung Asset Management's KODEX Consumer Cyclicals ETF posted year-to-date returns approaching 50% and 6-month gains of 39.02% as of the 23rd closing price.
KODEX Consumer Cyclicals ETF Records 28% Three-Month Gain
The ETF experienced a -4.68% decline over the recent month but maintained strong medium to long-term performance. The fund tracks the KRX Consumer Cyclicals Index and has been steadily managed since its 2017 listing, currently holding diversified investments across 39 stocks.
ETF Holds 39 Stocks Led by LG Electronics at 19%
Major holdings include LG Electronics (19.22%), Hanjin Kal (12.43%), Coway (12.37%), Shinsegae (8.60%), Youngone (4.82%), Kangwon Land (4.14%), Hyundai Department Store (4.12%), and Hotel Shilla (3.67%). The portfolio concentrates on representative consumer stocks expected to benefit directly from economic recovery. The fund maintains high exposure to sectors sensitive to domestic and tourism consumption recovery, including home appliances, retail, department stores, duty-free shops, hotels, leisure, and travel.
The strong performance of related stocks resulted from government consumption stimulus policy expectations combined with domestic economic recovery outlook, leading to results surpassing technology-focused ETFs. While AI and semiconductor ETFs increased short-term volatility, the consumer stock-centered portfolio recorded relatively stable returns, drawing attention as an alternative investment during volatile market conditions.
Samsung Asset Management Manager Cites Defensive Characteristics
Moon Hyun-wook, manager at Samsung Asset Management, stated: "Consumer cyclicals have a defensive nature against recent US-Iran geopolitical uncertainty and recent high volatility in domestic semiconductors Samsung Electronics and SK Hynix, so recent market trends have been favorable." He added: "Particularly, factors such as increased foreign tourists, exchange rate stabilization, and improved investment sentiment from rising domestic asset values are positive, and additionally, dividends and not-high valuations show distinct relative attractiveness compared to other sectors."
The asset management industry notes the possibility of continued relative strength in the consumer cyclicals sector if domestic economic recovery, increased foreign tourists, and improved consumer sentiment trends continue. Recent market trends of broadening interest from AI-centered single themes to earnings and economically sensitive sectors also create a favorable environment for consumer cyclicals ETFs.
FAQ
What was the 3-month performance of KODEX Consumer Cyclicals ETF as of the 23rd?
KODEX Consumer Cyclicals ETF recorded a 28.32% return over 3 months as of the 23rd closing price, according to Korea Fund Ratings FundSquare data.
What are the major holdings in KODEX Consumer Cyclicals ETF?
The ETF's major holdings include LG Electronics (19.22%), Hanjin Kal (12.43%), Coway (12.37%), Shinsegae (8.60%), Youngone (4.82%), Kangwon Land (4.14%), Hyundai Department Store (4.12%), and Hotel Shilla (3.67%), with the fund holding 39 stocks total.
Why did Samsung Asset Management cite the ETF as having defensive characteristics?
Manager Moon Hyun-wook stated consumer cyclicals have a defensive nature against recent US-Iran geopolitical uncertainty and high volatility in domestic semiconductors Samsung Electronics and SK Hynix, with positive factors including increased foreign tourists, exchange rate stabilization, improved investment sentiment, dividends, and not-high valuations showing distinct relative attractiveness compared to other sectors.
