The Rise of Shareholder Value-focused ETFs Amid Corporate Law Reforms

The reforms in corporate law pursued by the Lee Jae-myung administration aim to enhance shareholder value and improve corporate value. This legislative momentum is driving the growth of exchange-traded funds (ETFs) focused on themes of shareholder value and value-up. Notably, the TRUSTON Shareholder Value Active ETF recorded an impressive return of 17.60%, and there is a notable surge in the trading volume of related ETFs.
Individual investors are also aligning with this trend, increasingly focusing on the ETF market. This year, individual investors have net-purchased a total of KRW 46.1 billion worth of shareholder value-themed ETFs, underscoring their popularity. The strategy of investing in undervalued quality companies is particularly appealing, projecting expectations of high returns. If corporate law reforms lead to reinforced shareholder returns policies, these ETFs are expected to gain further momentum.
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