- Journalist Rebecca Sin of Bloomberg reported that Okay-Pop ETF is a big failure.
- Launched in 2022, the leisure ETF tracked 30 corporations on the Korean Inventory Change.
- BTS taking a hiatus and becoming a member of the military appears to be the key purpose for the failure.
Okay-Pop ETF is a Kflop, says journalist Rebbeca Sin of Bloomberg. Again in 2020, a Okay-Pop ETF emerged to channel international funds to the cultural phenomenon. Nonetheless, though the ETF started with a lot hope, it’s presently not doing too properly, in keeping with reviews.
Sin explains that Okay-Pop bands equivalent to BLACKPINK and BTS usually take over 5 years from their formation to their official debut. The exchange-traded fund (ETF) that tracks the mum or dad corporations follows an identical path from fund inception to success. Launched in 2022, Okay-Pop and Korean Leisure ETF tracks 30 corporations listed on the Korean Inventory Change that deal in leisure. This contains SM Leisure, Hybe, Naver, the search engine, and Kakao, the web chat app.
Along with these giant entities, Studio Dragon and Showbox are additionally a part of the checklist. Studio Dragon is the agency that produced Parasite, the class-critique cinema that gained Greatest Image on the 2020 Oscars. Parasite additionally turned the primary ever international language movie to win the Oscar for greatest film. Moreover, Showbox is among the producers of Squid Sport, a well-liked present that aired on Netflix in 2021.
Sin elaborates that since its inception, Okay-Pop has returned 8% with 3 million in property, which she calls a “not so starry quantity” dimmed by mainstream markets. That is whereas S&P 500 returned 15% throughout the identical timeframe.
The Okay-Pop ETF was additionally considerably affected after the boy band BTS introduced an indefinite hiatus in October of 2022 to deal with their particular person endeavors and to affix the military. Information of the younger heartthrobs becoming a member of the military despatched shares down, whereas debuts and contract renewals held them up quickly. The inventory rallied as a lot as 41% but additionally plummeted 37% on the again of this information. The present hope is the brand new bands and debuts will assist shares rally once more.
