Analysis of US and Korean ETF Market Trends
The Schwab US Dividend Equity (SCHD) ETF reported a performance decline of 0.23% this year, primarily due to underperformance in the energy sector components, leading to a capital outflow of $442.1 million over the past three months. In contrast, Korean investors showed continuous interest, purchasing a net $224.17 million worth of SCHD despite currency depreciation.
Structured ETFs, thriving in the US market, have not been as successful in South Korea. Samsung Asset Management halted new listings of its KODEX US S&P500 Buffer ETF series due to low investor interest, linked to domestic investors' preference for high-risk and high-reward opportunities over defensive products. Meanwhile, in the US, the market grows with the active use by financial planners and investment advisors.
Additionally, the Korea Exchange has newly listed three ETFs by Samsung Asset Management and Woori Asset Management. Samsung's 'KODEX Top 10 High Dividend' ETF targets high-dividend stocks in the KOSPI 200 finance sector, while 'KODEX US S&P500 Covered Call' employs a call option-selling strategy based on volatility. Woori Asset Management's 'WON K-Global Demand Top Picks' focuses on stocks with strong EPS growth and foreign investor interest.
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Related News
Exchange Lists 3 New ETFs from Samsung and Woori Asset Management - EdailyThe Korea Exchange announced on the 8th that it will list three ETFs (Exchange Traded Funds) from Samsung Asset Management and Woori Asset Management on the stock market on the 12th. First, Samsung Asset Management's 'KODEX High Dividend TOP10' is an ETF that invests in the top 10 stocks within the KOSPI 200 financial sector that meet high dividend criteria...
From Top Pick to Headache for Korean Retail Investors... Capital Leaving 'Schd' ETF [Maeng Jin-kyu's Global Money Flow] - Korea Economic DailyFrom Top Pick to Headache for Korean Retail Investors... Capital Leaving 'Schd' ETF, Reporter Maeng Jin-kyu, Securities
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Structured ETFs booming in the US, but cold in Korea... Why - Yonhap InfomaxUnlike its success in the US market, structured ETFs, which aim for 'medium risk, medium return' by reducing volatility, are not receiving much interest in Korea. Domestic major asset management companies, which ambitiously started market development, are struggling with operating related products. Concerns are arising that the sluggishness in the structured product market, excluding covered calls, could be prolonged. According to the financial investment industry on the 8th, Samsung Asset Management has decided to temporarily suspend the September listing of its 'KODEX US S&P500 Buffer' ETF series. This is due to the low interest and trading volume from investors. The March installment, launched in March, also saw low engagement.
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