Intensifying Competition in the ETF Market
Mirae Asset Management ranks 12th as a global ETF manager, operating ETFs worth 219 trillion won. The company has achieved significant growth across the U.S., Europe, and Asia through its 'Global X' and 'TIGER' brand ETFs, surpassing 414 trillion won in total assets under management. This success is largely attributed to its global financial strategy based on diverse innovative areas.
In the domestic ETF market, total net assets reached 212.2 trillion won in the first half of 2023, marking an increase of 40 trillion won compared to the previous year. Samsung Asset Management holds 81.8 trillion won, while Mirae Asset Management has 71.4 trillion won, widening the gap between the two companies. Samsung has been focusing on bond-type and money market ETFs, whereas Mirae is concentrating on U.S. indices and thematic products. Market dynamics are expected to be influenced by these strategic differences in the latter half of the year.
Samsung Asset Management maintains its number one position in the domestic market through captive funds from Samsung Life. Over the past three years, Samsung Life has poured 4.8 trillion won annually into Samsung Asset Management's KODEX ETFs, playing a pivotal role in the market share competition. The influx of captive funds is thus crucial to securing Samsung's dominant market position.
Specifically, Samsung Life has invested over 2 trillion won in KODEX ETFs this year, focusing mainly on bond and short-term capital products. This strategy aims to enhance the stability of its insurance assets, consequently contributing significantly to the rise in Samsung Asset Management's market share.
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'Captive Pronoun' Samsung Asset Management... Solid Backing in ETF Lead Reconfirmed - Yonhap InfomaxIn the domestic exchange-traded fund (ETF) market, Samsung Asset Management firmly holds the No. 1 position. Whenever there is a fierce competition for market share with rival companies, captive funds from insurance companies act as a shield to maintain the lead. According to electronic disclosures by the Financial Supervisory Service compiled by Yonhap Infomax on the 16th, Samsung Life has purchased around 4.8 trillion KRW of affiliate Samsung Asset Management's KODEX ETFs annually over the past three years (2022-2024). By year, this comprises 4.8723 trillion KRW in 2022, 4.8828 trillion KRW in 2023, and 4.8528 trillion KRW in 2024. In effect, this amounts to about 1 trillion KRW per quarter.
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