Polarization and Innovative Changes in the Korean ETF Market
The Korean ETF market is experiencing polarization under the dominance of major asset managers Samsung Asset Management and Mirae Asset Management, which control over 70% of the market share. This concentration contributes to a market size of approximately 400 trillion won. To differentiate themselves, smaller asset managers are focusing on active ETFs, with recent listings of KOSDAQ-based active ETFs gaining significant attention.
The newly introduced active ETFs in the KOSDAQ market expand investment opportunities beyond merely tracking the 'KOSDAQ150' index to encompass nearly 1800 KOSDAQ-listed stocks, including small and mid-cap growth stocks and undiscovered companies. This re-emphasizes the capital flow in the KOSDAQ market and revitalizes its original characteristics as a growth market for innovative firms.
The active ETFs from Samsung Asset Management and Timefolio Asset Management have demonstrated significant trading volumes, increasing the price volatility of included stocks such as SEONGHO Electronics and Qurient. These stocks constitute a substantial portion of daily trading volumes, heightening trading risks. As such ETF demand focuses on smaller stocks, increasing volatility poses fresh challenges to the market.
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