As semiconductor heavyweights such as Samsung Electronics and SK Hynix undergo a correction, the return rankings of South Korean group stock exchange-traded funds (ETFs) are being rapidly reshuffled. Samsung Group stock ETFs, which had previously posted top-tier returns on the strength of Samsung Electronics, have been pushed into negative territory as the sole decliners, while manufacturing-based group stock ETFs such as Hanwha, LG, and Posco have rallied across the board.

According to the Korea Exchange on August 19, PLUS Hanwha Group Stock rose 13.36% over the past month, ranking first among group stock ETFs. TIGER LG Group Plus followed at 7.69%, and ACE Posco Group Focus at 3.36%. In contrast, KODEX Samsung Group posted a -0.36% return, the only negative performance among major group stock ETFs, sinking to the bottom of the rankings.

The divergence in group-by-group performance is attributed to a rotation-driven market where funds previously concentrated in semiconductors are now dispersing across the broader manufacturing sector, including defense, shipbuilding, secondary batteries, and steel.

Hanwha Surges on U.S. Army Self-Propelled Howitzer Contract

Hanwha Group ETF’s strong performance is directly tied to expanding order wins in the defense sector. PLUS Hanwha Group Stock holds defense companies such as Hanwha Aerospace and Hanwha Systems at approximately 40% of its portfolio.

On August 18, Hanwha Aerospace announced it had been selected as the sole contractor for the U.S. Army’s self-propelled howitzer modernization program, valued at approximately 10 trillion won (approximately $7.2 billion). With this contract, exports of the K9 wheeled self-propelled howitzer to the United States have been confirmed, marking a successful entry into the global market.

Kim Yong-chul, manager of the ETF management team at Hanwha Asset Management, analyzed: “As supply and demand concentrated in AI semiconductors, even industries without any particular negative news underwent corrections, but recently supply and demand has been spreading across the manufacturing sector as a whole, driving a rebound.”

LG and Posco Reflect Expectations of Industry Recovery

LG Energy Solution led the gains in LG Group ETFs. The stock, which had been under downward pressure due to slowing electric vehicle demand, began to rebound on the back of growing energy storage system (ESS) demand from AI data centers. LG Energy Solution had plunged to near its 52-week low on July 29 but shifted to a recovery trend in August, with its one-month return reaching 12%.

Posco Group ETFs are being supported by shareholder return policies and upward earnings revisions. In particular, Posco Holdings has seen a series of target price upgrades from securities firms in the first half of the year as commercialization of secondary battery materials and lithium accelerates beyond its core steel business. However, sluggish lithium prices could disrupt investment recovery timelines and dividend capacity, which is flagged as a risk factor.

Hyundai Motor, Doosan, Kakao Remain Flat

The one-month returns of major group stock ETFs are as follows:

ETF1-Month ReturnPLUS Hanwha Group Stock+13.36%TIGER LG Group Plus+7.69%ACE Posco Group Focus+3.36%WON Doosan Group Focus+0.96%BNK Kakao Group Focus+0.26%KODEX Samsung Group-0.36%TIGER Hyundai Motor Group PlusContinued weakness

Note: Based on Korea Exchange data as of the August 18, 2026 closing price.

TIGER Hyundai Motor Group Plus has yet to escape its slump due to the impact of U.S. auto tariffs. WON Doosan Group Focus and BNK Kakao Group Focus also remained essentially flat at 0.96% and 0.26%, respectively.

Market participants believe whether the rotation continues will determine the performance of group stock ETFs going forward. If the recent strength does not translate into earnings improvement and new order wins, the rally could prove short-lived. Analysts point to third-quarter earnings and order results this year as the key variables that will separate winners from losers among group stock ETFs.

Manager Kim Yong-chul forecast: “South Korean companies occupy positions that are difficult to replace in global supply chains across the manufacturing sector, including defense, shipbuilding, and solar energy, so growth across group stocks as a whole is expected to continue.”