Growth of the Domestic ETF Market and Challenges for Small Asset Management Firms
While the domestic ETF market is experiencing rapid growth, not all ETFs are capturing the attention of investors. Small asset management firms are facing the risk of their ETFs disappearing from the market, with leading asset managers like KB Asset Management and NH-Amundi Asset Management encountering such delisting risks. The Korea Exchange has strengthened the delisting procedures for 'management items' ETFs with net assets of less than 5 billion KRW, emphasizing the need to eliminate 'zombie ETFs' due to lack of market demand. This measure aims to offer better choices to investors.
Samsung Asset Management has altered the distribution policy of its KODEX ETF to better align with investor demands. This change follows modifications in government tax laws, transitioning TR-type products to PR-type and expanding dividends to widen investment options. Due to the use of tax-efficient accounts by clients, the tax burden remains limited. Samsung Asset Management aims to enhance investor return and build trust by providing diverse investment options.
Related News
Small and Medium-Sized ETF Delistings Surge...11 Cases of Delisting This Year Alone - Metro NewspaperWhile the domestic ETF market is maintaining rapid growth, products that fail to attract investors' interest are quickly being pushed out of the market. This trend is especially focused on products from small and medium-sized asset management companies, highlighting the growing importance of differentiation strategies among operators. According to the Korea Exchange on the 26th,
[Interview] Samsung Asset Management VP Park Myung-je: "ETF Distribution Expansion? Expanding Customer Choice" - Yonhap Infomax"There was a 'thirst' among customers who wanted a bit more dividends from the S&P 500, Nasdaq 100 ETFs. This decision to expand the distribution directly reflects these voices, aiming to widen the range of investment options and create a 'virtuous cycle' of reinvestment," said VP Park Myung-je, who heads the KODEX ETF business at Samsung Asset Management, explaining the background to the recent dividend policy changes for major U.S. index ETFs. Despite some concerns from investors, he asserted that "actual customer responses are very positive" and expressed his confidence by stating, "We will persistently follow our own path at KODEX." VP Park made these remarks on the 22nd.