Samsung Asset Management's Buffered ETFs Struggle Amid U.S. Market Rally
Amid the ongoing rally in the U.S. stock market, Samsung Asset Management's buffered ETFs are facing unforeseen challenges. These financial products are designed so that additional returns become difficult once the S&P 500 index exceeds a certain level, and the recent market strength has highlighted these limitations. Specifically, the KODEX S&P500 buffer ETF is unable to generate further profits as the S&P 500 index rises, causing issues for investors.
As a result, Samsung Asset Management is experiencing an outflow of funds caused by these buffered ETFs, with around 31.6 billion KRW withdrawn in the past three months. This situation has led to investor dissatisfaction, prompting Samsung Asset Management to suspend the listing of new buffered ETFs for the foreseeable future.
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