2025 Cosmetics ETF Trends and Investment Strategies

1. 2025 Cosmetics Industry Outlook

Global cosmetics exports are expected to continue their steady growth in 2025, following the trend from 2024.
According to the Korea International Trade Association, consultations and contracts for the export of consumer goods are projected to increase significantly.
Exports are expanding to various global markets, particularly the United States, the Middle East, and Africa.

In 2024, South Korea surpassed France to become the leading import country in the U.S. beauty market.
Many Korean products have ranked in the top 100 of Amazon's beauty product sales.
This achievement not only signifies simple success but also enhances global scalability and increases the probability of regional success.

Success on online platforms like Amazon indicates the potential for Korean cosmetics to enter offline retail channels in the U.S.
The success of online sales of Korean cosmetics provides a basis for expansion into offline markets.

The worldwide spread of the Korean Wave (K-content) is driving the consumption of K-beauty products.
Global consumers prefer the excellent quality and trendy image of Korean cosmetics.

A trend of preferring cost-effective cosmetics is spreading among the U.S. MG (Millennials & Gen Z) demographic.
Indie beauty brands that offer near-luxury quality at affordable prices are gaining attention.

South Korea has secured world-class ODM capabilities with companies like Cosmax and Kolmar Korea.
The success of indie beauty brands is attributed to South Korea's unique ODM technology.

Successfully targeted the U.S. market initially based on rapid online channel capabilities and reasonable price points.
Key brands include: Nuana, Tirtir, Beauty of Joseon (mostly grew online).

Companies like Amorepacific are shifting their strategy from a China-centric market to global expansion.
The limitations in the speed of distribution network restructuring result in slower growth compared to indie beauty brands in the short term.

Growth of indie brands is coupled with the growth of ODM (e.g., Cosmax, Kolmar Korea) and distribution companies.
The operating profit margins of cosmetics companies' ODM and distributors are on an upward trend.

Portfolio includes core companies from brands, ODMs, and distributors.
Key holdings:
- Brand: Amorepacific
- ODM: Cosmax
- Distributor: Silicon2
Top 3 stocks are given a 60% weighting, and the remaining 7 companies are weighted based on free-float market capitalization.

Tariffs are imposed based on wholesale prices, with minimal impact on final consumer costs.
A 10% tariff on wholesale prices would lead to less than a 5% increase in final consumer prices.

Continued strong growth with offline expansion and diversification into various global regions.
Foreign investment trends: Foreign investors are consistently net buying in the South Korean cosmetics sector, indicating a positive outlook.

The South Korean cosmetics industry is set to drive growth in the global market in 2025.
Note the potential for expansion of both existing major brands and indie beauty brands.
Investing in the K-beauty value chain through ETFs is an efficient way to invest in the growth of ODM, distributors, and brands.

The South Korean cosmetics industry is expected to continue its expansion in the U.S. and globally in 2025.
K-content, value-for-money trends, and ODM competitiveness are key success factors.
The Sol Cosmetics Top 3 Plus ETF is an optimized investment product focusing on the K-beauty value chain.

*YouTube Source: [Jun’s economy lab]

– 미국시장에서 주목받는 K-화장품 ETF가 나왔습니다!(ft.SOL 화장품TOP3플러스)

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< Summary >

Bitcoin-Backed Loan Service Resumption:
- Coinbase is resuming its Bitcoin-backed loan service after 4 years, potentially increasing liquidity in the cryptocurrency market.
- The service initially had a positive impact on the market when introduced in 2020, but was discontinued in 2023 due to subsequent regulatory tightening.
- The service is relaunching due to regulatory easing under the Trump administration, which is expected to significantly impact cryptocurrency and stock markets.
Cryptocurrency Market and Regulatory Easing:
- As a result of Trump's pro-cryptocurrency policies and lobbying, a new White House cryptocurrency task force has been established.
- Participation by major crypto companies and political figures is raising expectations for regulatory easing and market activation.
The Beginning of a U.S.-Led Cryptocurrency Revolution:

Cryptocurrency companies' lobbying power has become so strong that cryptocurrencies are influencing election funding.
Various meme coins and related cryptocurrencies are emerging, drawing market attention.
Major exchange conferences and policy changes are triggering a FOMO (Fear of Missing Out) market.

ETFs and the Future Outlook of the Cryptocurrency Market:
- BlackRock and other major asset management firms are preparing to list cryptocurrency ETFs.
- Altcoin ETFs and various complex portfolio products are also expected to hit the market, raising expectations for cryptocurrency market expansion.
- There is an increasing possibility of a frenzy, which will have a direct impact on asset markets.
Notable Beneficiary Stocks:
- Robinhood and Coinbase, leading cryptocurrency trading platforms, have the potential to achieve profits due to increased trading volume.
- BlackRock, a traditional powerhouse, is maximizing profits through cryptocurrency ETFs.
- The rising B2 (increase in investment through borrowing) index is also creating a greedy market atmosphere.
Correlation Between Stock and Cryptocurrency Markets:

An increase in B2 (investing with borrowed money) can lead to a simultaneous rise in the stock and cryptocurrency markets due to increased liquidity.
Based on past data, there is a need to be cautious as a market overheating and correction is possible at some point after the B2 index rises.

Future Outlook of the Cryptocurrency Industry:
- In 2025, new cryptocurrency products such as Altcoin ETFs are likely to take the lead in the market.
- Increased interest in altcoins among individual investors is anticipated, predicting a highly volatile market.

Crafted by Billy Yang

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*YouTube Source: [소수몽키]

– 투자자 탐욕이 도를 넘기 시작했다? 자산시장 빚투 과열의 신호들