Korean ETFs Surpass US Equity ETFs in Market Capitalization Amid KOSPI Rally
Buoyed by a strong performance in the KOSPI, ETFs tracking the Korean stock market have now overtaken US equity ETFs in market capitalization. As of June 24, the top 10 KOSPI and KOSDAQ-linked ETFs reached a combined market cap of 79.32 trillion KRW, surpassing the top 10 US equity ETFs which stand at 61.41 trillion KRW. Notably, KODEX 200 has taken the leading spot, outperforming the previously dominant TIGER US S&P500 ETF. The TIGER Semiconductor TOP10 ETF has also experienced a remarkable rise, moving into third place and signaling a shift in the composition of the domestic ETF market.
Experts predict that the current trend of rising asset flows into Korean equity ETFs is likely to continue as long as KOSPI's momentum remains strong. Conversely, US equity ETFs have shown relatively modest returns in recent periods. The remarkable growth in Korean ETFs is closely related to the surge in specific sectors such as semiconductors, attracting increased investor attention. As a result, shifts in investor sentiment and capital inflows are expected to reshape the Korean ETF landscape.
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