Rapid Contraction in the Metaverse Market and Delisting of Related ETFs
The metaverse platforms, which once enjoyed significant popularity, are now either disappearing or experiencing a drastic decline in their stock prices. In South Korea, multiple metaverse ETFs have been delisted, contributing to instability in the market. Global corporations are retracting their investments in the metaverse, causing stocks related to the sector to plummet over 80% from their 2021 highs. The virtual real estate market has also seen a steep decline of over 90%.
Meta, formerly known as Facebook, plans to cut its budget for the metaverse business division by 30%, indicating a scaling-back of its operations. This move underscores the rapid cooling of the initial hype and expectations surrounding the metaverse. As global companies reduce their focus on the metaverse, concerns are arising that innovation in the related technologies and platforms may be delayed.
Listing of Kiwoom's S&P500 Momentum ETF
Kiwoom Asset Management is listing the 'KIWOOM US S&P500 Momentum' ETF on the stock market. This ETF tracks the 'S&P500 Momentum Index' and selects the top 100 stocks with the highest returns over the past 12 months. By using momentum scores, it assigns higher weightings to high-performing stocks with an aim to outperform the S&P500. The 'volatility-adjusted momentum' strategy is notably used to focus on risk management, while providing flexibility to quickly respond to market changes.
The listing emphasizes reducing risks during downturns while capturing maximum potential gains during upturns. By optimizing investment weight, it offers investors diverse growth opportunities compared to traditional S&P500 index investments. Lee Kyung-Jun, head of Kiwoom Asset Management, highlighted that this strategy could contribute to portfolio diversification and growth potential for investors. Therefore, this ETF is expected to be an attractive option for domestic investors.
Shinhan Asset Management's 'SOL KOREA High Dividend ETF' Surpasses 200 Billion KRW in Net Assets
Shinhan Asset Management's 'SOL KOREA High Dividend Exchange Traded Fund (ETF)' has attracted attention by recently surpassing 200 billion KRW in net assets. Since its listing on September 23, this ETF has recorded an accumulated net purchase of 158.4 billion KRW by individual investors in just two months, boasting the largest scale among dividend-related ETFs. This interest from investors reflects the appeal of high dividend ETFs that provide stable cash flow amidst increased volatility in the KOSPI index.
This ETF offers investors both stability and tax-saving benefits through a portfolio composed of companies with robust dividend strategies and shareholder return policies. It utilizes structures such as dividend income separated taxation and reduced dividends to deliver favorable returns for investors. Shinhan Asset Management aims to maximize real dividend yield through this ETF by aligning with domestic policy improvements and expanded tax benefits.
In summary, the 'SOL KOREA High Dividend ETF' is gaining significant popularity among individual investors and is expected to become an attractive option for those seeking stable dividend income. Based on these achievements, Shinhan Asset Management plans to further expand its presence in the domestic ETF market.
TIGER NASDAQ100: Asia's Largest NASDAQ100 Index ETF
The 'TIGER NASDAQ100 ETF' by Mirae Asset Global Investments has emerged as Asia's largest NASDAQ100 index investment ETF, surpassing a net asset value of 7 trillion KRW. This ETF's remarkable growth is attributed to the bullish NASDAQ100 index and robust performance of AI technology-driven big tech stocks. Celebrating its 15th anniversary, it has achieved a cumulative return of 1500%, making it a popular long-term investment vehicle for individual investors.
The recent bullish trend in the US stock market has propelled the net asset value of 'TIGER NASDAQ100 ETF' by 1 trillion KRW in just two months. This growth is deemed to provide domestic investors with opportunities to invest in the US market. Concurrently, the 'TIGER S&P500 ETF' is establishing itself as the largest overseas equity ETF in Korea. The series is further complemented by a range of monthly dividend ETFs known for high yield distributions.
Meanwhile, Kiwoom Asset Management has introduced the 'KIWOOM S&P500 Momentum ETF' to the stock market, offering investors a strategic option designed to minimize risk. The product selects and optimally weights the top 100 stocks by performance over the past 12 months, and is engineered for excess returns relative to the S&P500 by quickly adapting to market changes.
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