Current Status and Changes in the Domestic ETF Market
The domestic ETF market has recently seen rapid growth, reaching a record scale, while the launch of new synthetic ETFs has decreased. This decline is attributed to strengthened regulations following the Russia-Ukraine war, which, although designed for investor protection, are seen as limiting the diversity of products offered, according to industry concerns. The exchange has announced plans to improve the framework for synthetic ETFs, yet calls for regulatory easing are growing in the market, appealing for more flexible regulation to promote innovation and diversity among financial products.
In a newly shaped financial environment, policies like treasury stock retirement and differentiated taxation on dividend income have spotlighted ETFs that invest in companies active in shareholder returns. These ETFs, including holding companies, financial firms, and growth stocks, have posted high returns since the beginning of the year. Consequently, ETFs such as 'ACE Life Asset Shareholder Value Active' and 'HANARO Shareholder Value Growth Korea Active' are attracting funds, fostering an environment where rotational trades can potentially yield additional profit.
A noteworthy development is the KOSPI index surpassing 4,000 points in October for the first time in history, primarily driven by foreign and institutional investors. Meanwhile, ETF investments have registered net buying in the financial investment section. This was due to significant purchases of ETFs by individual investors, prompting securities companies to acquire equities to secure underlying assets. Experts suggest this trend indicates a shift in the domestic stock market from a focus on short-term trading to a more long-term investment approach, enhancing market stability positively.
Related ETF
Related News
"Made 160 million won if you invested 100 million"…This is what retail investors are flocking toIf you invested 100 million won, you earned 160 million won… Retail investors are flocking to holding companies, finance, preference stocks… Model student ETFs for shareholder returns are on the rise. Gaining attention as a leading industry following semiconductors Share buybacks and separate dividend income taxation As the year-end approaches, stock market improvement plans are taking shape Circulating expectations for holding companies, finance, and preference stocks. ACE Life Asset and HANARO Growth Shareholder Value ETF have yielded 50-60% this year.
Related ETF
Will Individual ETF Investments Fuel Long-term Uptrend in the Stock Market? - SmartTodaySmartToday = Reporter Lee Eun-hyung | There is interest in whether individual ETF investments will lead to a long-term uptrend in the domestic stock market. In the U.S., it is also reported that steady inflows of individual retirement fund investments are creating a solid market base. According to News1 on the 31st, in October the KOSPI has reached its first 'Four Thousand Points' (40
'Regulations from the Russia-Ukraine War Era Still in Place'...Synthetic ETFs Face Implicit Restraint, Industry Dissatisfaction - Invest Chosun'Regulations from the Russia-Ukraine War Era Still in Place'...Synthetic ETFs Face Implicit Restraint, Industry Dissatisfaction - Invest Chosun