Emerging Trends in Korea's ETF Market: The Rise of Protective Strategies
Kiwoom Asset Management has announced plans to list the 'KIWOOM US Tech 100 Monthly Target Hedge Active ETF.' This ETF is designed to mitigate downside risk while pursuing upside returns using a protective put strategy, and is noted for employing the delta hedging technique, which is relatively rare in Korea. This launch is expected to offer new investment opportunities for those seeking medium-risk, medium-return profiles.
In contrast, buffer ETFs are receiving a lukewarm response from the market. Despite having a defensive strategy against stock price declines, products like those launched by Samsung Asset Management have failed to capture the interest of investors due to their unclear profitability and lack of significant differentiation from existing ELS products. Individual investors particularly prefer more intuitive income distribution structures like those offered by covered call ETFs. Issues such as complexity and uncertain profit projections have been highlighted as key concerns.
Kiwoom's new ETF differs from existing covered call ETFs in that it aims to reduce losses in a declining market while maximizing gains in a rising market, all without limiting potential returns. This diversification in ETF strategies is anticipated to create an environment where investors can better understand and choose among various investment options.
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[Finance People] Kiwoom Asset Manager Lee Kyung-joon Brings a 'Second Covered Call' - Yonhap InfomaxLee Kyung-joon, the senior manager at Kiwoom Investment Management, who made history with covered call structured products in the domestic ETF market, has returned. This time, he proposes a 'medium-risk, medium-return' investment product that invests in the high growth potential of US big tech (technology stocks) while preparing for a market crash. He aims for another success with a Protective Put structured ETF that guards against downside risk while allowing for the upside. In an interview with Yonhap Infomax, on the 22nd, Lee Kyung-joon, head of the ETF Management Division at Kiwoom Asset Management, said, "We provide a tailored strategy for medium-risk, medium-return investors who seek growth opportunities while protecting their valuable retirement assets in the Korean market.
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딜사이트2025 7月 21
Kiwoom Asset Management, Lee Kyung-joon's First ETF… Opening Fire with a 'Downside Protection' Strategy - DealSiteProtective put strategy… Keeping upside profits open while hedging downside risks