Solactive Partners for the First Time with KB Securities on Two ETNs Tracking Solactive Indices
Japan is a global leader in the robotics industry, with several top companies headquartered in the country. In 2022, over 280,000 industrial robots were produced in Japan, with a total production value exceeding 1.02 trillion JPY1. This success is underscored by the robust growth experienced by the Japanese machinery sector since 2014, driven by the nation’s imperative for automation in response to its aging society. The correspondingly decreasing workforce projections lead to anticipation of increased demand for automated systems and advanced industrial machinery and equipment2. The country’s outlook remains positive on the consumer front following a solid post-pandemic recovery3. Given the growth opportunities within the Japanese market, Solactive is pleased to announce a new partnership with KB Securities, listing two ETNs, the KB Japan Robotics TOP 10 ETN and the KB Japan Consumer TOP 10 ETN, tracking the Solactive Japan Robotics & Machinery Index and the Solactive Japan Consumer Index.
The Solactive Japan Robotics & Machinery Index is designed to track the performance of ten Japanese companies operating in robotics and machinery. These companies are involved in various businesses, including electronic equipment/instruments, industrial machinery, computer peripherals, electrical products, electronic production equipment, and various other industries. The index is derived from the Solactive GBS Japan All Cap Index and represents a cross-section of Japan’s prowess in robotics and machinery.
The Solactive Japan Consumer Index also tracks ten Japanese companies selected from eligible constituents in the Solactive GBS Japan All Cap Index and classified within consumer-oriented categories like entertainment, retail, home/care products, and food/beverages.
Both indices are free float market capitalization weighted and undergo semi-annual rebalancing.
The ETNs are listed on the Korean Stock Exchange on December 15, 2023, with the code 580056.KS and 580057.KS.
Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “Japan’s robust and revived economy, and its traditionally strong position in robotics and consumption, have become strong growth opportunities again, internationally. We are grateful that KB Securities has chosen to partner with us to introduce and provide new solutions for Korean investors to tap into those opportunities ahead, and we look forward to assisting them further with our innovative indexing solutions in the future.”
Byung-gu Kim, Head of Passive Sales and Marketing at KB Securities, also added: “KB Securities is committed to providing a wide range of products to meet the diverse needs of investors. We plan to actively supply not only products with a market focus but also products with an eye toward the future. KB Securities is happy to launch these two ETNs with Solactive which are in line with our vision.”
1 Robotics industry in Japan – Statista
2 Japan Robotics Industry – International Trade Administration
3 Japan economic outlook, October 2023 – Deloitte