Analysis of Thematic ETFs and Political Leaders' Engagement in the ETF Market
An analysis of thematic ETFs listed over the past three years shows that a majority underperformed compared to the KOSPI. Of the 96 thematic ETFs, 62% lagged behind the KOSPI within three months of their listing, suggesting that these ETFs often debut at or near short-term peaks. Particularly, the 'KODEX K Defense TOP10' ETF was noted to underperform by 14.33% compared to the KOSPI after three months. Investors are advised to exercise caution, as themes such as secondary batteries were prominent in 2023 listings, with materials and component ETFs following in 2024.
South Korean President Lee Jae-myung and former U.S. President Donald Trump are actively engaging in domestic and international ETF markets respectively. President Lee is supporting the Korean stock market by investing personally in domestic ETFs. In contrast, Trump is leveraging his company, Truth Social, to set up the TSSD ETF centered on defense contractors to generate profits. Both leaders are strategically using ETFs to pursue their political and economic interests, drawing significant attention from Wall Street.
Related ETF
Related News
5 ETFs with Soaring Returns on News of President's Arrest... It's the Current President Who Created and Supported Them [Daily Money Habit M+] - Maeil Business Newspaper
The Betrayal of Thematic ETFs...Half Underperform Index Gains [Market Deep Dive] - Korea Economic DailyThe Betrayal of Thematic ETFs...Half Underperform Index Gains, Fully Analyzed Thematic ETFs Listed in the Last 3 Years, After 3 Months of Listing, 62% Underperform KOSPI Returns, With Growing Investor Interest Leading to ETF Production and Evaluation Starting, Thematic ETF Launch Marks Short-Term Peak of the Sector
Related ETF