Growth and Challenges in the ETF Industry
Major asset management companies in Korea are rapidly increasing their workforce to expand their exchange-traded fund (ETF) businesses. However, due to the low fee structure of ETFs, profitability improvements remain limited despite market expansion. Both Samsung Asset Management and Mirae Asset Global Investments have increased their staff but have not seen significant improvements in average fees. The industry attributes this to the ongoing fee reduction competition in the ETF market, which structurally constrains the profitability of management companies.
Shinhan Investment Corp is celebrating its ‘Shinhan Premier Medium-Term Individual Savings Account (ISA)’ reaching a balance of 3 trillion won by hosting an ‘ISA ETF Net Buying Event’ until May 31. Participants can receive a cultural gift voucher through a draw, with vouchers worth up to 30,000 won available. The event includes nine ETF stocks, and non-face-to-face medium-term ISA customers can enjoy fee benefits. Additionally, maintaining an ISA account for more than three years provides tax benefits.
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Shinhan Investment Corp, 'Brokerage ISA ETF Net Purchase Event' - DailyianShinhan Investment Corp announced on the 16th that it will hold a 'Brokerage ISA ETF Net Purchase Event' until May 31 to commemorate the surpassing of 3 trillion KRW in the balance of 'Shinhan Premier Brokerage Individual Comprehensive Asset Management Account (ISA)'. This event targets individual customers aged 19 and over who have a brokerage ISA account. Foreigners, minors, and employees cannot participate.
Increased Staffing for ETF Expansion… Limitations in Asset Managers' Profitability - E-Today▲Yeouido Securities Domestic asset management companies are accelerating the expansion of their ETF (Exchange Traded Fund) businesses and rapidly increasing their management personnel. However, ETF products are traditional public offerings