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International Journal of Advanced Research
Article . 2025 . Peer-reviewed
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SMART BETA PORTFOLIO STRATEGY ON TECHNOLOGY AND FOOD STOCK IN SOUTH KOREA

Authors: Shaeva Violisa Halim; Dwi Fitrizal Salim;

SMART BETA PORTFOLIO STRATEGY ON TECHNOLOGY AND FOOD STOCK IN SOUTH KOREA

Abstract

This study discusses the performance of stocks of technology companies and food companies in South Korea in the period January 2019-November 2024 which are attractive to foreign investors due to their strategic position in the global economy. However, companies do not always show good performance. Therefore, a careful investment strategy is needed, including the preparation and management of portfolios. In compiling the portfolio, this study uses a smart beta strategy that has been proven to provide superior returns compared to traditional portfolios. Portfolio management involves two strategies, namely a passive approach and an active approach. This quantitative descriptive study uses open prices from stock data prices that form a portfolio based on selected betas. Weighting is adjusted for higher beta stocks in receiving a larger allocation in the portfolio. This study compares three beta groups (high, medium, and low) and two investment strategies (active and passive) using the Sharpe index.The results of this study indicate that the medium beta group and passive strategy have better performance with competitive return values ​​without having to face too much risk. The passive strategy provides a balance between risk return and maintaining stability without dependence on market movements that tend to be volatile.

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citations
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
gold