Growth and Liquidity Issues in the Korean ETF Market

The Korean ETF market has rapidly grown to reach 156 trillion won, but the number of ETFs facing delisting due to low liquidity is also increasing. According to the Korea Exchange, 72 out of 883 ETFs have recorded net assets below 5 billion won, an increase of 23 compared to the end of last year. ETFs with low trading volumes face a high risk of delisting, prompting experts to recommend investing in ETFs with higher trading volumes and larger net assets. Compared to the U.S. ETF market, South Korea has a higher number of ETFs but a smaller overall market size.
The best-performing ETF this week was Mirae Asset Asset Management's 'TIGER 200 Healthcare,' which rose by 8.12%. This ETF diversifies its investments in healthcare service stocks within the KOSPI 200 constituents, and pharmaceutical and biotech stocks showed strong performance. In particular, Yuhan Corporation's stock soared by 31.70%, as lower interest rate forecasts for the second half of the year improved the investment environment. Additionally, new listings this week include Mirae Asset’s 'TIGER U.S. AI Big Tech 10' and Kiwoom Asset Management's 'KOSEF Global Power Grid Infrastructure'.
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