Growth and Performance Analysis of the Korean Active ETF Market
As market volatility increases, investor interest in active exchange-traded funds (ETFs) has been surging in Korea. More than half of ETFs listed this year have been active ETFs, which are gaining attention for their managers’ ability to pursue returns above index benchmarks. According to the Korea Exchange, total net assets of active ETFs have grown by over 10 trillion KRW this year, highlighting the segment’s rapid expansion. Additionally, there are efforts underway to introduce fully active ETFs that are not required to track a specific index, potentially offering new opportunities especially for small and mid-sized asset managers.
Performance among new active ETFs varies significantly. KB Asset Management's 'RISE Korea Strategic Industries Active ETF' achieved a stellar return of over 46%, mainly by investing in major semiconductor stocks such as Samsung Electronics and SK Hynix. Industry analysis shows that ETFs focusing on semiconductors and secondary batteries outperformed, whereas those with a biotech tilt—such as Mirae Asset Management’s 'TIGER Tech Transfer Bio Active ETF'—recorded lower or even negative performances, underscoring the importance of sector allocation.
Looking at global exposure, Samsung Asset Management’s 'KODEX US S&P500 Active ETF' marked its first anniversary with a 60.3% return, outperforming the S&P500 by 17.8 percentage points. This fund invests in core S&P500 stocks and actively adjusts sector weights, enhancing investment efficiency. It exhibits a high correlation with the S&P500 (correlation coefficient of 0.95), indicating it generally moves with the market while successfully delivering alpha through active management.
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“Better than my poor investment skills”... Betting 100 trillion on fund managers' direct operations - Maeil Business NewsDespite the stock market's rapid decline, they flexibly aim for excess returns beyond index tracking. Half of this year's listed ETFs are active, and they are pushing to introduce fully active types like overseas, removing index-linked requirements.