NH-Amundi launches Korean Agribusiness ETF on KRX

Dec 23rd, 2018 | By | Category: Equities

NH-Amundi, a joint venture between Amundi and Korea-based NongHyup Financial Group, has launched the NH-Amundi Hanaro Agriculture Business ETF (60004 KS) on the Korea Exchange.

NH-Amundi launches Korean agricultural business ETF on KRX

The fund provides exposure to Korean firms operating within the agricultural sector.

The fund tracks the FnGuide Agriculture Business Industry Index, providing exposure to locally listed equities from firms operating within the agricultural sector.

The starting universe for the fund includes all firms listed within the KOSPI (large-cap) or KOSDAQ (mid and small-cap) trading markets of the Korea Exchange.

Stocks with market capitalizations of less than 50 billion won (approx. $45 million), average daily trading volumes of less than 500m won (approx. $500,000), or trading histories of less than three months, are excluded.

The selection pool is further reduced by examining the remaining constituents’ sales information for the previous two years and removing those firms with less than 50% exposure to the agricultural sector.

The largest 40 firms are then selected to form the final index which is weighted by market capitalization subject to a 10% cap per stock. Index rebalancing occurs on a semi-annual basis in May and November.

The ETF comes with an expense ratio of 0.52%.

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