Seoul:Exchange-traded funds (ETFs) tracking secondary battery companies have emerged as top performers in the South Korean stock market this month as investors anticipate increased demand from artificial intelligence (AI) data centers.
According to Yonhap News Agency, data from the Korea Exchange (KRX) revealed that eight out of the ten best-performing listed ETFs this month were connected to the secondary battery industry. The KODEX Secondary Battery Industry Leverage ETF, managed by Samsung Asset Management Co., recorded the highest return at 19.94 percent through Thursday. The TIGER KRX Second Battery Top10 Leverage ETF, managed by Mirae Asset Global Investments Co., followed with a return of 18.45 percent.
Market experts noted that investors are gravitating towards battery-related ETFs due to the expected benefits for the energy storage system (ESS) segment from the AI industry boom. Kim Gwi-yeon, an analyst at Daishin Securities Co., highlighted the anticipated continuation of order momentum this year, which is expected to translate into share price momentum next year, driven by improvements in ESS businesses' sales and profitability. Kim has maintained an "overweight" rating on the sector.