Hana Asset Management's '1Q US Aerospace Tech ETF' Surpasses 500 Billion KRW in Net Assets
Hana Asset Management's '1Q US Aerospace Tech ETF', listed last November, has surpassed 500 billion KRW in net assets approximately 11 weeks post-listing. The ETF primarily invests in leading US aerospace tech companies such as Rocket Lab and Joby Aviation, and continues to gain popularity among individual investors. Currently, the net purchase by individual investors amounts to 326.2 billion KRW, marking the highest investment inflow among equity ETFs.
Should SpaceX move forward with its IPO, the ETF plans to include it at the highest allocation. This decision aligns with SpaceX's ongoing efforts to establish AI infrastructure following its recent merger with the AI company, xAI. These initiatives by SpaceX, including the development of Starlink-based AI infrastructure, signal promising growth prospects, which have attracted further investment inflows anticipating the company's market debut.
Hana Asset Management intends to continue releasing differentiated ETF products, providing investors with diverse options and aiming for sustained growth. The consistent purchase momentum aligns with the positive growth forecast for the industry, creating a favorable investment environment for investors.
Rapid Growth in the Domestic ETF Market and Key Drivers
Recently, the domestic stock market has been on the rise, with the total net assets of Exchange Traded Funds (ETFs) approaching approximately 355 trillion won. This growth was mainly driven by the Kosdaq 150 index-following products and semiconductor-related ETFs, seeing a rise of over 50 trillion won in the past month. Contributing factors include high exchange rates, substantial fiscal activities, and high performances, with continued growth in the Korean stock market anticipated.
The rise in both the KOSPI and KOSDAQ indices has significantly contributed to the growth of the ETF market. Notably, the Kosdaq index recorded a higher growth rate than the KOSPI index, drawing a considerable amount of individual investors' funds into the Kosdaq market. However, there is an opinion that this growth is more attributed to ETF inflows than corporate performances, suggesting investors need careful selection of stocks.
The government is pushing for the introduction of single stock leverage ETFs as part of its strategy to revitalize the domestic stock market. This is seen as a measure to prevent funds from flowing overseas and is expected to be limited to high-quality large-cap stocks. They will track double the daily volatility of a single stock, making them more suitable for short-term trading rather than long-term holding.
To counteract the risk of investing in 'zombie companies', there are plans to introduce active ETFs into the rapidly growing ETF market. This move aims to address concerns of short-term overheating, accompanied by high PER, and is expected to offer investors safer and more varied options.
Korea Investment Management's ACE US SMR Nuclear TOP10 ETF Surpasses 20 Billion KRW in Individual Investor Net Purchases
The ACE US SMR Nuclear TOP10 ETF from Korea Investment Management has drawn considerable interest from individual investors, surpassing 20 billion KRW in net purchases within just six trading days after its listing. This ETF focuses primarily on key companies involved in small modular reactors (SMR), with notable holdings including NuScale Power, Oklo, Cameco, and Centrus Energy. The allure of this investment lies in the significant growth potential of the SMR industry within the US, bolstered by expected government policy funds and facility investments.
Nam Yong-soo, the director at Korea Investment Management, expressed optimism about the ETF's future prospects, citing potential benefits from government support and industry growth. SMR technology enables environmentally friendly and cost-effective electricity production, making it a globally significant area of interest. Consequently, this ETF is seen to have considerable advantages not only from an environmental standpoint but also in terms of economic growth, as forecasted by analysts.
Diverse Developments in the ETF Market: GlobalX Brazil's Success and Volatility in AI and Precious Metals
GlobalX, the ETF subsidiary of Mirae Asset Global Investments, has achieved significant growth by more than doubling its assets under management in Brazil within a year. This growth has been driven by themed products focusing on uranium, AI, and precious metals, with the ETF BDR's assets nearing 50 billion KRW. GlobalX Brazil is targeting both individual investors and investment advisors, while also investing in financial education. Looking ahead, the company plans to launch additional ETFs focused on the defense industry and rare earth elements, promising broader investment opportunities.
AI-related stocks have emerged as a key variable in the stock market, with corresponding ETFs showing mixed returns. This indicates that the investment cycle is entering an expansion phase, and experts assert that it's challenging to summarize the AI theme with a single narrative. Therefore, investors are advised to make selective investments in specific AI-beneficiary ETFs.
Recently, increased volatility in gold and silver prices has led domestic investors to flock towards silver-focused ETFs. This trend appears to be prompted by bargain-hunting sentiment following a sharp drop in silver prices, coupled with expectations for industrial demand growth. However, silver is noted to be more volatile than gold, with significant speculative interest, necessitating investor caution. Future prices of gold and silver are expected to be influenced by geopolitical tensions and fluctuations in the value of the dollar.
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