Want to invest in K-pop? BTS, Blackpink, Twice and NCT’s labels included in new US investment fund
- The KPOP and Korean Entertainment ETF (exchange-traded fund) targets fans and others who want to help the K-pop industry grow
- The fund packages together a range of K-pop and South Korean media companies, including Hybe, YG, SM, JYP and CJ ENM
A new investment fund targeting K-pop fans and those interested in investing in the South Korean entertainment industry launched on the New York Stock Exchange’s Arca exchange on September 1.
The KPOP and Korean Entertainment ETF (exchange-traded fund) – ticker KPOP – launched by Seoul-based CT Investments, packages together a variety of K-pop and South Korean media companies.
These include BTS’ label Hybe, Blackpink’s label YG Entertainment, NCT’s label SM Entertainment, Twice’s label JYP Entertainment, and CJ ENM, which is behind events including KCON and the MAMA Awards, and the Oscar-winning film Parasite.
“It is time for fandom to directly contribute to the K-pop industry beyond culture,” reads the ETF’s website.
K-pop as a music entity and cultural power has grown significantly in recent years, drawing millions of fans around the world.
“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,” the website says.
“In addition, entertainment companies will be able to hear and reflect the voices of domestic and overseas fans participating in the investment more vividly than before.”
The ETF enables international investors to directly back the South Korean stocks of the companies it holds.
At opening, the ETF featured 30 holdings, and a day before launch its total market value, known as the assets under management (AUM), was US$200,000. The net asset value (NAV) of the fund’s shares was appraised at US$20.50.
The ETF opened at US$19.65 a share and was valued at US$19.71 at the close of US markets.
Jangwon Lee, the CEO of CT Investments and Contents Technologies, a South Korean content company that builds and invests in IPs, under which CT Investments is a subsidiary, said in a statement:
“The global market for K-pop is still at an early stage of growth and the KPOP and Korean Entertainment ETF will offer thematic exposure to key companies in the Korean entertainment and media industry that stand to benefit from this secular trend.”
The ETF will be assessed quarterly. Only companies with a market capitalisation of around US$76 million on the Korea Exchange are set to be included in it.
