South Korean asset management companies launched 9 active exchange-traded funds among 18 new ETF listings during the past month from June 23 to July 23, according to the financial investment industry on the 23rd. The surge in active ETF launches reflects increased market volatility and widening performance gaps between individual stocks, prompting asset managers to emphasize stock selection capabilities over passive index-tracking strategies. Active ETFs now account for 23.1% of South Korea's total ETF market with net assets of 103.97 trillion won.
Samsung Asset Management's KODEX Product Attracts 200 Billion Won in One Week
Samsung Asset Management's 'KODEX 200 Covered Call Active' ETF, launched on July 14, surpassed 200 billion won in individual net purchases within one week. Other recent active ETF launches include 'TIGER US Tech NYSE100 Active', 'ACE K Bio KOSDAQ Active', and 'DS KOSDAQ Active'. Upcoming listings include KB Asset Management's 'RISE KOSDAQ Covered Call Active' scheduled for launch on the 28th, along with 'HANARO US S&P500 Active', 'WON Physical AI TOP2 Plus Active', and 'MIDAS Bio Healthcare Active'.
Active ETF Assets Grow 46.3% Year-Over-Year to 103.97 Trillion Won
Active ETF net assets totaled 103.97 trillion won as of the previous day, representing 23.1% of the total ETF market of 450.14 trillion won. Compared to one year ago, active ETF net assets increased approximately 33 trillion won, a 46.3% growth. During the same period, the number of active ETF products increased by 73 to reach 316 products, accounting for 27.5% of total ETF products numbering 1,150. Active stock ETFs (excluding leveraged and inverse products) now represent 9.2% of stock ETF net assets, an increase of 3.2 percentage points compared to the previous year.
KOSDAQ Active ETFs Record Double-Digit Negative Returns
KOSDAQ active ETFs launched in March recorded negative returns. According to Korea Exchange data as of the previous day, 'KoAct KOSDAQ Active' posted a 3-month return of -32.21% and a 1-month return of -27.04%. 'TIME KOSDAQ Active' showed returns of -35.64% and -30.10% for the respective periods. 'PLUS KOSDAQ150 Active' recorded returns of -37.46% and -26.07% during the same timeframes. The KOSDAQ index fell 36.40% and 22.5% during these periods, with some KOSDAQ active ETFs underperforming the index. An asset management company portfolio manager stated, "The recent poor performance of KOSDAQ active ETFs was largely due to structural market factors and supply-demand issues."
FAQ
What percentage of new South Korean ETF listings in the past month were active ETFs?
Active ETFs accounted for 9 out of 18 new ETF listings during the period from June 23 to July 23, representing exactly half of all new launches in the South Korean market.
How much did active ETF assets grow in South Korea over the past year?
Active ETF net assets in South Korea increased by approximately 33 trillion won, representing 46.3% growth year-over-year, reaching a total of 103.97 trillion won as of the previous day.
How did KOSDAQ active ETFs perform compared to the KOSDAQ index?
KOSDAQ active ETFs launched in March showed negative returns ranging from -32.21% to -37.46% over 3 months and -26.07% to -30.10% over 1 month, with some underperforming the KOSDAQ index which fell 36.40% and 22.5% during the respective periods.
