The home exchange-traded fund (ETF) market has grown with unstoppable momentum, opening the period of 300 trillion gained in internet property. After surpassing 200 trillion gained in June this yr, it has swelled by almost 100 trillion gained in simply six months, establishing itself as a veritable nationwide wealth administration product.
Based on KOSCOM on Dec. 10, the full internet property beneath administration (AUM) of domestically listed ETFs was tallied at 291.926 trillion gained as of the day before today. Whereas it took roughly 21 years for the market to first break 100 trillion gained in June 2023 after KODEX 200 first appeared available in the market in 2002, it took solely two years to exceed 200 trillion gained this June. Subsequently, internet property recorded 286.3 trillion gained on the finish of final month, swelling by roughly 100 trillion gained in simply six months.
TIGER S&P500 and KODEX 200 recorded internet property of 12.113 trillion gained and 11.101 trillion gained respectively, rating first and second amongst all ETFs, as perception within the inventory market’s long-term upward pattern unfold among the many youthful technology and drove demand. Notably within the second half of this yr, varied theme merchandise together with semiconductors, nuclear energy, supplies·parts·tools sectors, U.S. massive tech, and shareholder return confirmed energy alongside the flourishing of the substitute intelligence (AI) business. The benefits of ETFs, which permit broad funding in whole industries or world provide chains as an alternative of betting on particular person corporations, have been highlighted. Moreover, the successive launch of latest merchandise assembly numerous portfolio wants as demand elevated for short-term fund administration and danger diversification by way of gold and bonds is cited as an element that fueled development.
Capital market consultants unanimously agreed that institutional funds, significantly pension funds and retirement pension inflows, are obligatory for the ETF market to advance past 300 trillion gained to the 400 trillion gained period. They identified that structural points surrounding the home ETF market, together with tax discrimination, liquidity disparities, and extreme advertising competitors, should be resolved to leap to the following stage. Lee Hyo-seop, senior researcher on the Capital Market Analysis Institute, defined, “If ETFs may be actively utilized for retirement pension funding, long-term investment-based retirement asset administration shall be additional strengthened like in the USA,” including, “Because of their product traits, ETFs facilitate straightforward rebalancing of retirement pensions and might stably keep diversification results by adjusting dangerous asset proportions in accordance with retirement timing.”
