Rapid Growth and Investor Interest in the Korean ETF Market
While the KOSPI index has stabilized around the 3100 level, a rapid rise in the KOSDAQ has led leverage ETFs to record high returns. Notably, KB Asset Management's 'RISE KOSDAQ 150 Futures Leverage' ETF achieved an outstanding performance of 9.86%, outperforming the average return of domestic equity funds at 1.09%.
The domestic ETF market has seen significant growth this year, with domestic equity ETFs spearheading market expansion. Individual investors are particularly keen on index products such as the KOSPI 200, and Samsung Asset Management's successful performance with KODEX ETFs is noteworthy. This growth is partially driven by optimism regarding regulatory and financial tax reforms, which are bolstering investment sentiment.
In a departure from the first half of the year, where investors primarily tracked the S&P500, individual investors are now increasingly focused on domestic equity products. The KODEX 200 ETF has notably achieved net purchases of 288.6 billion KRW by individual investors, ranking as the top item in terms of net buying. This trend suggests a concurrent rise in investments in financial and dividend thematic ETFs, influenced by the government's policies affecting the stock market.
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