KB Asset Management's RISE Berkshire Portfolio TOP10 ETF fell 2.88% in July, significantly outperforming Korean stocks during a volatile period when KOSPI dropped 22.19% and KOSDAQ declined 21.44%. The defensive performance stemmed from the ETF's diversified portfolio strategy, which invests in Berkshire Hathaway and the top 10 holdings from its SEC 13F filings. According to data released by the financial investment industry on the 5th, the ETF attracted attention as a 'defensive ETF' amid sharp corrections centered on semiconductor stocks in the domestic market.
ETF Records 2.88% Decline Against 22% Korean Stock Market Drop
The RISE Berkshire Portfolio TOP10 ETF's 2.88% decline in July contrasted sharply with the broader Korean market collapse. The ETF also outperformed the US NASDAQ Composite Index, which fell 3.20% during the same period. Long-term performance remained solid, with the ETF recording a 4.74% return over three months, 7.03% over six months, and 24.30% over one year as of the 4th, according to KB Asset Management data.
Annualized Volatility Reaches 15.6% Compared to KOSPI's 52.5%
The ETF demonstrated significantly lower volatility than Korean indices. Based on daily closing prices over the past year, the RISE Berkshire Portfolio TOP10 ETF's annualized volatility stood at 15.6%. This represented approximately one-third of KOSPI's 52.5% and KOSDAQ's 46.9% volatility levels. The ETF's volatility also came in below the NASDAQ Composite's 18.9%, while matching the S&P 500's 13.2% level.
Portfolio Diversifies Across Berkshire Hathaway and Top US Companies
The ETF invests in Berkshire Hathaway (BRK.B) and the top 10 stocks from Berkshire Hathaway's 13F investment portfolio filed with the US Securities and Exchange Commission (SEC). The portfolio includes Apple, Alphabet, American Express, Bank of America, Coca-Cola, and Chevron. The strategy distributes investments across different sectors including finance, consumer goods, information technology (IT), and energy to reduce the impact of sharp declines in specific industries. The underlying Solactive Berkshire Portfolio Top10 Index adjusts constituent stocks regularly based on Berkshire Hathaway's publicly disclosed 13F holdings. The 13F is a quarterly stock holdings report that US institutional investors submit to the SEC.
Yuk Dong-hwi, Head of KB Asset Management's ETF Product Marketing Division, stated: "The number of investors looking for assets they can invest in steadily from a long-term perspective rather than focusing on short-term market fluctuations is increasing. The RISE Berkshire Portfolio TOP10 ETF, which diversifies investments in Berkshire Hathaway and global leading companies, is an efficient investment product that can be utilized in constructing portfolios for long-term investment purposes such as pensions."
FAQ
How did the RISE Berkshire Portfolio TOP10 ETF perform in July compared to Korean stocks?
The ETF fell 2.88% in July, while KOSPI dropped 22.19% and KOSDAQ declined 21.44% during the same period. The ETF also outperformed the US NASDAQ Composite Index, which fell 3.20%.
What is the volatility difference between the ETF and Korean stock indices?
The ETF's annualized volatility over the past year was 15.6%, approximately one-third of KOSPI's 52.5% and KOSDAQ's 46.9%. It also registered lower volatility than NASDAQ Composite's 18.9% and matched S&P 500's 13.2% level.
Which companies are included in the ETF's portfolio?
The portfolio includes Berkshire Hathaway (BRK.B) and the top 10 holdings from its SEC 13F filings, including Apple, Alphabet, American Express, Bank of America, Coca-Cola, and Chevron, diversified across finance, consumer goods, IT, and energy sectors.
