Retirement Pension Market Sees Shift toward ETFs and TDFs
A significant trend is emerging in the retirement pension market, where capital is shifting from principal-protected products to ETFs and equity funds. This transition is particularly driven by investors in their 40s and 50s, though similar patterns can be observed across all age groups. Defined Contribution (DC) accounts with performance-based investments posted a 12-month return of 18.2%, significantly outpacing principal-protected accounts by six times. The surge in returns is largely attributed to focused investments in thematic products, especially semiconductor ETFs featuring Korean giants like Samsung Electronics and SK Hynix.
In parallel, Target Date Funds (TDFs), which have become a flagship product for retirement pensions, continue rapid expansion. The net assets of domestic TDFs soared by 54.11% over the past year, reaching KRW 27 trillion. Shinhan Asset Management now commands a market share of 10.1% with KRW 2.72 trillion in net assets, while Hanwha Asset Management expanded its net assets by 165.4% to join the KRW 1 trillion club. Both asset managers are delivering competitive returns through differentiated product strategies and are at the forefront of the growing TDF market.
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Shinhan and Hanwha Boost ETF Presence, Lead in TDF Market with High Returns - Business PostShinhan and Hanwha Boost ETF Presence, Lead in TDF Market with High Returns