KODEX Value Stock ETF delivered an 81.23% return year-to-date through the 24th, outpacing KODEX Growth Stock ETF's 64.23%, according to Korea Exchange data. The 17 percentage point gap widened after June as KOSPI volatility increased. Both funds hold Samsung Electronics and SK Hynix as top positions exceeding 40%, but value stocks' higher exposure to financials and autos provided better downside protection during the adjustment phase.
KODEX Value ETF Records 81% Return Through the 24th
According to the Korea Exchange, KODEX Value Stock ETF posted an 81.23% return from the beginning of the year through the 24th, surpassing KODEX Growth Stock ETF's 64.23% by 17 percentage points. Recent 3-month returns showed KODEX Value at 14.52% compared to KODEX Growth's 4.95%.
During the recent 1-month period when KOSPI entered an adjustment phase, the performance difference became more pronounced. KODEX Value recorded -19.30% while KODEX Growth fell -24.10%. Both products declined, but the growth stock ETF experienced a larger drop.
The two products showed similar return trends through the first half of the year, with a performance gap of less than 1 percentage point as of June 15. Samsung Electronics and SK Hynix led the domestic market rally, benefiting both products equally during that period.
Portfolio Composition Drives Performance Gap After June
The performance divergence began after June when the KOSPI adjustment phase intensified. Large-cap stocks beyond Samsung Electronics and SK Hynix declined significantly. KODEX Growth Stock's technology stock weighting stands at 60.65%, approximately 15 percentage points higher than KODEX Value's 44.89%.
The value stock ETF's lower-tier holdings include companies with lower price volatility such as Kia and BNK Financial Group. Financial stocks and defensive sectors showed relatively favorable performance compared to technology stocks, supporting the value stock ETF's return defense.
Comparison of FnGuide's 'MKF Pure Value' and 'MKF Pure Growth' indexes reveals a clearer difference between representative domestic value and growth stocks. The MKF Pure Value index, with high weightings in SK, Korea Electric Power, Kia, and Woori Financial Group across energy, utilities, and financial sectors, fell only 1.05% during the recent 1-month period through the 24th. In contrast, the pure growth index comprising SK Hynix, Samsung Electro-Mechanics, Hanwha Aerospace, and Samsung SDI plunged 19.74%.
Experts Recommend Barbell Strategy for Market Volatility
Experts analyze that a 'barbell strategy' holding both value and growth stocks will be effective in the second half. Jung Jae-wook, Head of Samsung Asset Management's ETF Management Team 3, stated, "Given that high volatility conditions may continue in the short term, it is necessary to consider a diversification strategy rather than concentrating only on growth stocks."
FAQ
What was the performance difference between KODEX Value and Growth ETFs year-to-date through the 24th?
KODEX Value Stock ETF returned 81.23% year-to-date through the 24th, while KODEX Growth Stock ETF returned 64.23%, creating a 17 percentage point gap according to Korea Exchange data.
Why did KODEX Value ETF outperform during the recent market adjustment?
The value stock ETF's higher exposure to financials and autos, with lower-tier holdings including Kia and BNK Financial Group, provided better downside protection when KOSPI volatility increased after June. KODEX Growth's 60.65% technology weighting versus Value's 44.89% resulted in larger declines during the adjustment phase.
What investment strategy do experts recommend for the current market conditions?
Jung Jae-wook, Head of Samsung Asset Management's ETF Management Team 3, recommends a barbell strategy holding both value and growth stocks rather than concentrating only on growth stocks, given that high volatility conditions may continue in the short term.
