Woori Asset Management Corp. will launch an active exchange-traded fund (ETF) that tracks an environmental, social and governance (ESG) index jointly developed by the Maeil Business Newspaper and NH Investment & Securities.

The MK-iSelect AI ESG index is driven by artificial intelligence (AI) which analyzes all the news that comes in day after day in real time. The index selects the top 100 stocks from Kospi and Kosdaq by reflecting AI-rated scores and market capitalization. It is adjusted quarterly, relative to other indices, including the Kospi 200 ESG index and the KRX ESG Leaders 150 index, which are adjusted once a year.

An AI-powered index enjoys high objectivity and consistency because it completely excludes the subjective opinions of human analysts and performs analysis based only on objective data.

“The demand for AI-based ESG analyzes is growing as investors increasingly appreciate objectivity, transparency and rapid updating,” said Kwon Soon-woo, analyst at SK Securities.

Woori Asset Management has chosen ESG as the theme of its first ETF product. According to market trackers, the value of global ESG-themed funds and ETFs is expected to reach $ 1.33 trillion in 2030, up from $ 170 billion in 2020. The Financial Times found that assets under management in ETFs ESG have jumped to $ 146.8 billion this year, from $ 86.9 billion. .

It is an active ETF in which managers actively engage in seeking additional returns by trying to outperform a benchmark, compared to passive ETFs that only track a particular benchmark. Active funds are more attractive investments because they can react quickly to the changing industrial landscape, according to Seo Woo-seok, managing director of Woori Asset Management.

The asset manager plans to include Samsung Electronics, SK hynix, Naver, Samsung SDI, Kakao and LG Chem in the pool.

The fund will be listed on January 5.

By Moon Ji-woong and Choi Mira

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