Fans of K-pop can now invest in the growth of their favourite bands with the launch of a new investment fund, KPOP and Korean Entertainment ETF (exchange-traded fund), on the New York Stock Exchange’s Arca exchange.
The ETF, which has the ticker KPOP, was launched on 1 September by South Korean company CT Investments, a subsidiary of Content Technologies.
Here are all the details about KPOP ETF
Who can invest and which companies are in the Index?
International investors can directly back South Korean stocks of the companies held under the ETF.
Its benchmark KPOP Index tracks the performance of 30 K-pop and other South Korean media companies, including HYBE, which manages BTS, and YG Entertainment, which manages BLACKPINK. The 30 companies included in the fund are listed on the Korean Exchange.
According to a Bloomberg report, it is the first such fund in the US or Europe. The report also says that the KPOP Index will be rebalanced quarterly and its members are selected by an AI, which scans keywords on the internet to see if the companies are involved in K-pop-related businesses.
The KPOP Index is more inclined towards the entertainment industry — between 70 percent and 80 percent weight — than the interactive media & services industry, which forms the rest.
All companies that are part of the ETF are required to have a market capitalisation of around USD 76 million on the Korean Exchange, says the report.
What is the current status of the ETF?
As of 21 September 2022, the ETF’s total market value, or assets under management (AUM), was USD 2.6 million. The net asset value (NAV) was USD 18.23.
On the day of the launch, Jangwon Lee, the CEO of CT Investments and Contents Technologies, said in a statement that the ETF has been launched “to provide an opportunity for global fans who love K-pop to participate in the potential growth and development of the K-pop industry as well as investors access to Korea-listed companies that are driving the future of global content industry forward.”
The ETF’s official website says, “It is time for fandom to directly contribute to the K-pop industry beyond culture. If fans directly participate in its investment and speak out, K-pop will be able to maintain and grow in a healthier and more desirable direction.”
(Main image: BLACKPINKOFFICIAL/@BLACKPINK/Twitter; Featured image: Apple Music/@AppleMusic/Twitter)
