Analysis of Domestic and International ETF Market Trends
In the first quarter of 2023, the domestic ETF market in South Korea gained attention due to the stellar performance of the defense theme. 'PLUS K-Defense' recorded an astonishing return of 64.73%, and the overall market size increased by more than 15 trillion won, approaching a total of 190 trillion won. This outcome reflects the sustained interest of investors in the defense sector. Among domestic investors, 'TIGER U.S. S&P500' was the most popular ETF, indicating the ongoing interest and trust of individual investors in large-cap U.S. equities.
Additionally, there has been a growing popularity of parking-style ETFs among individual investors. This trend illustrates the investors' inclination to seek short-term stability amidst market volatility. As parking-style products attract more funds, more investors are choosing them in anticipation of stable returns.
In the United States, due to the pressure on the stock market from President Trump's tariff policies, American investors have turned their attention to European ETFs. According to Reuters, U.S. investments in European ETFs stood at $10.6 billion in the first quarter, a seven-fold increase from the previous year. Notably, there is a strong influx of funds into European defense-related ETFs. This phenomenon appears to be a reaction to President Trump's suggestion of NATO withdrawal, highlighting the necessity for Europe to bolster its own defense capabilities.
Related ETF
Related News
US Retail Investors' Investment in European ETFs Surges Sevenfold …"Trump Makes Europe Great" - Financial News(Seoul=News1) Reporter Park Hyeong-gi = As the U.S. stock market struggles due to Trump's tariff bombshell, American investors are pouring money into European ETFs, leading Reuters to report on the 1st (local time) that "Trump is making Europe, not America, great." American investors have recently...
“Better than Semiconductors”...Defense Industry Rises as a Leading Korean Industry, Dominates ETF Market - Maeil Business NewspaperFirst Quarter ETF Report: Defense Theme ETFs Yield 40-60%, ETF Market Grows Over 15 Trillion to 189 Trillion Won
Related ETF