THE WHAT? US asset manager Guinness Atkinson has filed plans to launch the first US-listed exchange-traded fund (ETF) dedicated exclusively to the K-beauty sector, providing investors with targeted exposure to South Korea’s cosmetics and personal care industry.
THE DETAILS The proposed KBTY ETF, filed with the US Securities and Exchange Commission, will list on NYSE Arca and invest at least 80% of its assets in South Korean companies operating across the beauty value chain, including brand owners, contract manufacturers, ingredient suppliers, retailers and dermatology-focused businesses. Rather than selecting individual stocks, the fund will track a rules-based index. The filing comes as South Korea’s cosmetics exports reached a record US$7 billion in the first half of the year, with exports to the US rising 41.5% year-on-year. Analysts also highlighted strong K-beauty performance during Amazon Prime Day, where Korean brands accounted for half of the top 50 best-selling skincare products.
THE WHY? The ETF marks a significant milestone for the K-beauty industry by establishing it as a standalone investment theme in the US capital markets, potentially attracting greater international investment and supporting the sector’s long-term growth.
Source: Korean Herald
