Rapid Growth and Challenges of the Domestic ETF Market
The domestic Exchange-Traded Fund (ETF) market is experiencing rapid growth and is on the verge of reaching the 200 trillion won milestone. ETFs have established themselves as a popular 'national investment' tool due to their ease of trading and low fees, with significant growth noted in the retirement pension market. Providing a wide array of investment options across various countries and assets, combined with the boom in overseas investment and competitive fee structures, has significantly contributed to this growth.
However, along with the rapid expansion of the market, several risk factors have been identified. The proliferation of leveraged and inverse ETFs poses potential dangers by encouraging short-term speculation and risk exposure for investors. Additionally, the indiscriminate launch of thematic ETFs could undermine market stability. Despite these challenges, the domestic ETF market is recording an average annual growth rate of 45%, with expectations to surpass 300 trillion won next year, indicating its substantial potential.
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Even Large Company Employees All In… What is the 'People's Investment' Attracting 200 Trillion Won?Even large company employees all in… What is the 'people's investment' attracting 200 trillion won? ETF investing has become public finance, easy portfolio adjustments and volatility management, utilizing retirement pensions for overseas stock ETFs. Technology and defense sector options are plenty with more investments like India, bringing over 37 trillion won into foreign stock types over the last 5 years. Stable income and monthly dividends remain popular, though the rampant thematic proliferation leading to zombie ETFs is an issue.