AdvisorShares, begun trading a new ETF, the AdvisorShares KIM Korea Equity ETF (NYSE Arca: KOR) on Thursday, September 29, 2016. Here is a synopsis of the new ETF:
|Symbol: KOR||Exchange: NYSE ARCA|
|Name: AdvisorShares KIM Korea Equity ETF||Net Expense Ratio: 0.99%|
The AdvisorShares KIM Korea Equity ETF is an actively managed fund which seeks to provide long-term capital appreciation above the capital appreciation of its primary benchmark, the MSCI Korea Index, and other Korea-focused indexes.
The Fund’s sub-advisor, Korea Investment Management Co., Ltd. (Sub-Advisor), manages the Fund’s portfolio by buying and holding stocks of companies at attractive valuation that it believes have growth potential. When selecting stocks of companies that it believes have growth potential, the Sub-Advisor considers a number of factors including a company’s annual sales growth with sustained profit margins; annual earnings per share growth; and anticipated sales or earnings per share growth. The Sub-Advisor focuses on corporate fundamental research in its stock selection, often called “bottom up” analysis. The Sub-Advisor will invest the Fund’s assets with a mid- to long-term view, typically seeking to avoid short-term trading. In selecting investments for the Fund’s portfolio, the Sub-Advisor places emphasis on fundamentals rather than on short-term momentum and continuously monitors market risks. In deciding whether to sell investments in the Fund’s portfolio, the SubAdvisor considers the following factors: a company’s stock price reaches its target price; a company in the portfolio experiences negative fundamental changes; errors are found in the previous assumptions or forecasts of a company; and more profitable alternatives are found.
In addition to individual stock selection, the Sub-Advisor engages in sector allocation based on analysis of the macro economy and its effect on corporate competitiveness and industry cycles. This is often called “top down” analysis. The Sub-Advisor strives to invest with large economic cycles as compared to short-term market trends and short-term supply and demand.
Fund Top Holdings (10/05/16):
|5930||SAMSUNG ELECTRONICS CO LTD||15.39%|
|11170||LOTTE CHEMICAL CORP||2.55%|
|5380||HYUNDAI MOTOR CO||2.51%|
|130960||CJ E&M CORP||2.50%|
|2550||KB INSURANCE CO LTD||2.50%|
|105560||KB FINANCIAL GROUP INC||2.49%|
KOR Home Page
Category: Equities> Regions> Asia> Developed Asia Equities> S. Korea
Here is a comment from Mr. Hong-Rae Cho, chief executive offer of Korea Investment Management:
“Our steadfast investment approach has been long-committed to bringing sustained success and outperformance to our institutional client base. Our portfolio management team invests in companies and industries with favorable prospects thus capturing new dynamism of companies with new business models, new technologies and new markets, which provides an opportunity to deliver returns in excess of our benchmark to KOR shareholders. We believe that an ETF represents the best investment structure to deliver our actively managed investment expertise, which we look forward to offering to a broader audience of investors in the United States.”