ETF Marketing Competition and Market Expansion
Samsung Asset Management and Mirae Asset Management are under scrutiny for prioritizing company profits over investor interests in their aggressive ETF marketing strategies. Particularly, Mirae Asset Management has been embroiled in controversy over potential violations of capital market laws by pre-marketing ETFs before their effective date. This intense marketing competition disrupts market order and is associated with issues such as exaggerated advertising and product imitation.
In the U.S. market, the number of listed ETFs has surpassed the number of listed stocks, highlighting the rapid expansion of the ETF market. In the first half of this year alone, 469 new ETFs were listed, marking a 50% increase within a year. While investors face an abundance of choices, which can be overwhelming, there are advantages such as reduced management fees. Successful ETFs are anticipated to provide stable returns in the long term.
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