Vigorous Interest from Individual Investors in KODEX Kosdaq150 and Leverage ETFs
In conjunction with the recent bullish trend in the Kosdaq market, individual investors have been channeling substantial funds into Samsung Asset Management's 'KODEX Kosdaq150' and 'KODEX Kosdaq150 Leverage' ETFs. These ETFs recorded individual net purchases of 503 billion KRW and 514 billion KRW, respectively, marking them as top investments for the year. This trend among individual investors is attributed to the financial authorities' market revitalization expectations and the growth of biotech stocks.
Particularly, interest in biotechnology stocks has significantly increased, leading to large capital inflows into the KODEX Kosdaq150 investment. This suggests a strategic adjustment in investment focus from industries such as AI and semiconductors to biotechnology. Samsung Asset Management is actively engaging in investor recruitment in line with this trend.
Conversely, a strong buying trend from individual investors betting on the decline of the Kospi200 futures index is evident in the KODEX200 Futures Inverse 2X ETF. This reflects efforts by investors to diversify their portfolios based on various indices and strategies.
Rising Popularity of ETFs and Changing Pension Investment Strategies
The popularity of Exchange Traded Funds (ETFs) is growing among pension investors, driven by an impressive return of 38.8% over the past year, significantly exceeding the average. ETFs are attractive to investors due to their low cost, real-time tradeability, and tax deferral benefits when used in pension accounts. This has led to the continuous release of products that balance stability and profitability.
Hanwha Asset Management has introduced six investment products for pension savings and IRP accounts at the year's end, aiming for long-term stable returns. It recommends ETFs such as 'PLUS High Dividend Buyback', 'PLUS S&P500 Bond Blend 50', and 'PLUS Global HBM Semiconductor', which focus on high dividends, bond blends, and the semiconductor industry, emphasizing long-term growth potential.
According to analysis by Samsung Securities, there are clear generational differences in ETF investments within retirement pension DC accounts. The 2030 generation tends to focus on the U.S. S&P500 and Nasdaq100 indices, while the 4050 generation exhibits a more conservative approach by adding safe assets such as gold. The 60s generation adopts a diversified investment strategy, encompassing semiconductors, government bonds, and technology stocks. These trends indicate an accelerated transition to performance-linked investment products in pension investments.
Trends in ETF Investments by Pension Funds and Institutional Investors
Pension funds are actively investing in AI-related infrastructure and the semiconductor sector for long-term growth. According to data from the Korea Exchange, pension funds have made sizable purchases of 'KODEX US AI Core Infrastructure' and 'RISE AI Semiconductor TOP10' ETFs, amounting to 71 billion KRW and 59.5 billion KRW, respectively. This investment strategy is predicated on the expected structural growth of the AI industry and the potential benefits for domestic semiconductor firms in the reorganization of the AI chip market.
Meanwhile, Hyundai Asset Management has launched the 'UNICORN SK Hynix Value Chain Active' ETF, expecting high growth from SK Hynix, and has recorded an impressive 144.12% annual return, drawing attention in the domestic ETF market. The fund focuses on HBM technology, though its chief, SangHyun Cho, warned of the risks posed by an AI-related stock bubble.
Institutional investors have recently purchased 735.9 billion KRW of the 'TIGER MSCI KOREA TR ETF' as part of their strategy, anticipating foreign investors' buying shifts and improvements in investment sentiment following the dissipation of the AI bubble. The Federal Reserve's accommodative monetary policy and stable exchange rates are also expected to encourage foreign buying, and institutions are actively buying domestically indexed funds like 'KODEX Leverage' and 'KODEX 200 ETF'.
Challenges and Shifts in the Domestic ETF Market
The domestic Exchange Traded Fund (ETF) market is facing criticism for the role of its top players, Samsung Asset Management and Mirae Asset Management, in hindering growth. These companies have been releasing nearly identical thematic ETF products around the same time, aiming to protect market share. However, this strategy has been seen as limiting innovation in the market. Over the past two years, there has been a noticeable trend of multiple ETFs released in quick succession under the same concept.
Contrastingly, Yuk Dong-Hwi, the head of ETF Product Marketing at KB Asset Management, highlighted the paradigm shift in the domestic ETF market towards a more demand-driven framework, predicting a rise in defensive ETF demand. He noted the importance of focusing on emerging markets like India and anticipated that the Korean ETF market would follow a development trajectory similar to that of the United States. Yuk further emphasized sustainable growth based on customer trust through a 'snowman strategy.'
Ranking
Explorer
ETF LAB Inc. | CEO: Sejong Kim
7411, Korea Advanced Institute of Science and Technology (KAIST), 85 Hoegi-ro, Dongdaemun-gu, Seoul, Republic of Korea (Cheongnyangni-dong)
For inquiries: servicedesk@k-etf.com
Business Registration Number: 196-81-03476
Customer Service: +82-2-6401-3421
The information provided by K-ETF is solely for informational purposes and may contain errors, delays, or omissions due to unavoidable circumstances. We do not assume any legal or financial responsibility for the outcomes of users' investments, so please exercise caution when using this information.