Korea Investment Trust Management will introduce an exchange-traded fund (ETF) that diversifies investment across domestic strategic industries such as shipbuilding, defence and nuclear power, centred on semiconductors.

Korea Investment Trust Management said on Aug. 11 it will newly list the "ACE SemiconductorPlus Strategic Industries ETF".

The ETF is designed to spread investments across leading stocks in 5 domestic industries with global competitiveness. It selects 2 representative stocks from each industry, for a total of 10 holdings.

Semiconductors account for the largest share of the portfolio. It also includes shipbuilding, defence and nuclear power as core strategic industries.

The remaining industry will be selected from autos, pharmaceuticals and biotech, secondary batteries, cosmetics, chemicals, steel, finance and entertainment, considering factors such as industry size and policy. At the time of listing, the auto industry is expected to be included.

Autos were chosen in consideration of investment exposure to the humanoid sector. Auto-related stocks could be excluded if another industry is selected during future regular rebalancing.

Expected holdings currently include SK Hynix, Samsung Electronics, Hyundai Motor, Hyundai Mobis, Doosan Enerbility, Hyundai Engineering & Construction, Hanwha Aerospace, Korea Aerospace Industries, HD Korea Shipbuilding & Offshore Engineering and Hanwha Ocean. The portfolio is not final and may change at the time of listing.

Nam Yong-soo (남용수), head of the ETF division at Korea Investment Trust Management, said, "This ETF is a product that builds a portfolio by adding 1 promising industry to strategic industries such as semiconductors, shipbuilding, defence and nuclear power," adding, "It has the advantage that you can invest in domestic strategic industries at once with a single ETF."