KODEX Battery Industry (305720) 🔎 In-depth

The benchmark is the 'FnGuide Secondary Battery Industry Index,' calculated by FnGuide. From stocks listed on the securities market (KOSPI) and KOSDAQ, it screens companies with high relevance to the secondary-battery business and holds about 25 of them. Each stock's weight reflects both its relevance and its market capitalization (the market value of the whole stock), but to prevent excessive concentration in any one name, individual weights are capped (with a ceiling) at around 20% for the top name and about 15% for the next. Rebalancing occurs quarterly. This ETF tracks the index using 'physical replication,' actually buying and holding those stocks.

As a plain (1x, not leveraged or inverse) ETF, when the prices of its secondary-battery holdings rise this ETF rises, and when they fall it falls with them. However, the battery industry itself is sensitive to EV sales trends, national policies, and raw-material prices such as lithium, so price swings tend to be large. In particular, when the earnings and share prices of the heavily weighted Samsung SDI and LG Energy Solution are shaken, the whole ETF moves significantly. As a domestic asset it is not affected by exchange-rate movements.

This is a growth/thematic ETF that invests in secondary batteries — considered a future growth industry — all at once. Its strength is that it spreads across the battery value chain, but in practice it is heavily concentrated in a few large-cap cell and materials names, so the diversification benefit is limited. It is sensitive to growth expectations and policy/raw-material news, so it can rise sharply in good times but fall steeply when the cycle turns — a high-volatility product. Its defensive character is weak, so it is worth considering whether you can withstand the swings of its trend.

Korea's secondary-battery industry has gone through a difficult period for the three major battery makers amid the so-called 'chasm,' a slowdown in the rising trend of EV demand, during which earnings were badly shaken. On the other hand, as the spread of artificial-intelligence (AI) data centers increased demand for energy storage systems (ESS) that store electricity, it drew attention as a new avenue for battery companies. Changes in US EV-subsidy and tariff policy and swings in lithium prices are also variables that drive earnings and share prices. On July 13, 2026 the closing price was ₩13,435, the NAV (the actual asset value of one ETF share) was ₩13,481, and AUM (net assets) was around ₩1.51 trillion.

In a word, it is a 'basket that invests in the entire EV-battery industry at once.' It mainly holds battery makers such as Samsung SDI and LG Energy Solution and cathode-materials companies, and just remember that, with high growth expectations, it is a high-volatility thematic product that rises and falls sharply with policy and raw-material news.