Innovation and Challenges in the Korean ETF Market
Korean asset management firms are actively leading the ETF market with innovative products. TIMEFOLIO Asset Management has achieved outstanding results with its 'TIMEFOLIO US Nasdaq 100 Active' ETF, which has outperformed the Nasdaq 100 index. Kim Nam-ho, head of the division, emphasizes that the ETF's success indicates the potential growth of the active ETF market in Korea, attributing it to the flexible response capability inherent in active strategies.
Samsung Asset Management has launched a series of ETFs focusing on popular themes in its endeavor to defend market share, though it has sparked dissatisfaction among smaller firms. This situation highlights the structurally limited model of frequent similar-themed ETF launches, leading to criticism about the hindrance to fair competition in the market.
Shinhan Asset Management's 'SOL Koreamega Tech Active' ETF stands out as a noteworthy domestic equity active ETF. It consistently rebalances its portfolio monthly to focus on next-generation growth industries, achieving a 59.46% return in 2023, outperforming the KOSPI and KEDI Megatech indices. Additionally, its net assets grew 6.5 times from the beginning of the year, amounting to 107.5 billion KRW, with investments concentrated in major sectors such as mobility, artificial intelligence, and intelligent robotics.
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