Shown above is the head office of Mirae Asset Global Investments in Seoul. The firm’s electric vehicle-related ETF has attracted investors despite recent bad news in the industry. Photo courtesy of Mirae Asset Global Investments

Battery-EV ETF shows sign of turning around

Mirae Asset Global Investments announced on Jan. 12 that financial customers had shown a sign of returning to the rechargeable battery- and EV-related exchange traded fund (ETF).

The Seoul-based asset management company noted that the net asset of its Tiger SOLACTIVE ETF had topped 300 billion won ($240 million) of late.

The ETF includes automakers, electric vehicle part producers, and firms associated with autonomous driving based in advanced countries, South Korea and Taiwan.

Many automobile firms-linked ETFs have suffered over the past half year after U.S. President Joe Biden signed the Inflation Reduction Act (IRA) last August.

Under the IRA guidelines, electric cars should be assembled in North America to qualify for tax credits.

Due to the act, many Korean carmakers, including Hyundai Motor and Kia, saw their electric vehicles fail to receive the tax credit because most of them were churned out in Korea.

Mirae Asset pointed out that investors would hope for a turnaround of the market because the share price of EV manufacturers plummeted of late.

“Thanks to the government incentives in the United States and Europe as well as the high petroleum price are expected to boost the EV sales this year,” Mirae Asset senior official Song Min-gyu said in a statement.

“When it comes to autonomous driving technology, competent firms are trying to strengthen their competitiveness through proactive M&As.”

However, Mirae Asset advised investors to monitor the market from the long-term perspective, although the EV market was expected to be good over the long haul.