Battery ETFs among top performers this month: market data

This month, exchange-traded funds (ETFs) focused on secondary battery companies led the performance in South Korea's stock market, according to data released on Friday. Investors are anticipating a surge in demand for artificial intelligence (AI) data centers, which is driving the upward trend. Out of the top 10 best-performing listed ETFs this month, eight are tied to the secondary battery industry, as reported by the Korea Exchange (KRX), the principal stock exchange operator in the country.

The KODEX Secondary Battery Industry Leverage ETF, managed by Samsung Asset Management Co., achieved the highest return at 19.94 percent through Thursday, followed by the TIGER KRX Second Battery Top10 Leverage ETF, managed by Mirae Asset Global Investments Co., with a return of 18.45 percent. Industry experts attribute the popularity of battery-related ETFs to the anticipated benefits from the AI industry boom, particularly in the energy storage system (ESS) sector.

Market analysts predict that the upward momentum in orders towards the end of the year will continue into the next year, propelled by the expansion of sales and profitability in ESS businesses, as stated by Kim Gwi-yeon, an industry analyst.