Rising 'Zombie ETFs' in the Korean ETF Market and Delisting Trends
The Korean ETF market is witnessing a rise in 'Zombie ETFs', with 42 ETFs facing delisting this year alone. This trend stems from a lack of differentiation among ETF products, leading investors to often overlook these options. The primary cause is attributed to the excessive launch of similar products due to intense competition among asset managers. Consequently, according to the Korea Exchange, ETFs with assets under 5 billion KRW are subject to delisting, a trend that has been on the rise in recent years.
For the long-term growth of the ETF market, experts emphasize the importance of qualitative improvement and post-launch management of products. It is crucial to earn investor trust through continuous aftercare and by creating differentiated ETFs in the market. Particularly pressing is the need for asset managers to formulate strategies to curb the increase of 'Zombie ETFs' with low trading volumes. Therefore, asset managers should focus more on managing existing products rather than launching new ones.
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Despite Bull Market in KOSPI, 'Zombie ETFs' Emerge…Delisting Warning - DailianThe domestic Exchange Traded Fund (ETF) market has reached an era of 280 trillion won, yet the 'zombie ETFs' that are not attracting investor interest and have low trading volumes continue to persist. Ironically, the number of ETFs facing delisting is steadily increasing even during the domestic stock market bull phase. According to the Korea Exchange, a total of 42 ETFs have been delisted this year (from January 2 to November 18).
KOSPI Bull Market Overlooked: Zombie ETFs on the Rise… Delisting Warning - DailyanDespite the Korean ETF (Exchange Traded Fund) market reaching the 280 trillion KRW era, 'zombie ETFs', which don't garner investors’ attention and have low trading volumes, are not decreasing. It's an ironic situation where ETFs continue to be delisted even amid the booming domestic stock market. According to the Korea Exchange on the 19th, a staggering 42 ETFs have been delisted this year (from January 2 to November 18).