Intensified Competition in the Domestic ETF Market and Key ETF Products Overview
The domestic ETF market is experiencing an expansion of competition from equity-type to bond-type ETFs. KB Asset Management's 'RISE Short-Term Special Bank Bond Active' ETF has seen rapid growth, reaching a 1 trillion won scale in a short period, garnering significant attention. However, this rapid growth has sparked controversies related to the influx of captive funds, heralding changes in the market.
Samsung Asset Management and Korea Investment Trust Management Company have also joined the fray by introducing similar U.S. Treasury ETFs. Such intensified competition suggests that the ETF industry will face more fierce competition in terms of returns and fees. Consequently, investors now have a wider choice, but it requires thorough examination of product features and fee structures.
Samsung Asset Management's KODEX U.S. Money Market Active ETF surpassed a net asset value of 300 billion won after its listing in May, showing noteworthy performance. The ETF offers a simultaneous investment opportunity in U.S. short-term bonds and dollars, boasting a high distribution rate of 4.72% and the lowest total expense ratio of 0.05% among similar products. This makes it particularly distinguished for cost-efficiency in the same category.
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Unceasing Competition in Bond-Type ETFs...From Captives to Imitation - Yonhap InfomaxIn the domestic management industry, the overheating competition in Exchange-Traded Funds (ETFs) is expanding beyond stock types to include bond types. Due to the characteristics of ultra-short-term bond ETFs, issues such as managing as 'captives' using short-term surplus funds from affiliates and controversies over imitating competitive products have arisen. According to the Yonhap Infomax ETP trading status (screen number 7111) on the 29th, there are four leading management companies with ETF net assets exceeding 10 trillion won: Samsung (86 trillion), Mirae Asset (74 trillion), KB (17 trillion), and Hanwha Investment & Securities (16 trillion). As the industry competes across-the-board in terms of net asset size, bond-type ETFs, in addition to the existing stock types, are involved.
Samsung Asset Management, KODEX US Money Market Active Surpasses 300 Billion Won in Net Assets - Money TodaySamsung Asset Management announced on the 29th that the net assets of the KODEX US Money Market Active ETF, which was listed last May, have surpassed 300 billion won. As of the previous day's closing price, the net assets of the KODEX US Money Market Active were 304.9 billion won. The cumulative net buying amount by individual investors is 14.9 billion won, making it the largest among dollar short-term bond ETFs listed in Korea. This product includes US ultra-short-term bonds and...
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