Domestic ETF Net Asset Value Surpasses 60 Trillion KRW for the First Time Ever
174x Increase Since First Listing in 2002
[Asia Economy Reporter Minwoo Lee] The total net assets of the domestic Exchange-Traded Fund (ETF) market surpassed 60 trillion won for the first time in history.
The Korea Exchange announced on the 22nd that as of the 20th, the total net assets of the domestic ETF market reached 60.0768 trillion won. This represents an approximately 174-fold increase compared to 344.4 billion won at the time of the first domestic ETF listing in 2002. During the same period, the number of listed ETFs increased from 4 in 2002 to 469. The average daily trading value surged from 32.7 billion won in 2002 to 3.7459 trillion won.
The Exchange explained that this growth was driven by expectations of global economic recovery leading to rising stock indices and inflows of investment funds, as well as the continuous supply of new ETF products based on various domestic and international underlying assets.
In particular, approximately 5.0867 trillion won was newly invested in domestic sector ETFs from early last year to recently. During this period, 3.2547 trillion won flowed into domestic bond ETFs, and 3.1179 trillion won into domestic leverage and inverse ETFs. Overseas sector ETFs and overseas market-representative ETFs also attracted 2.2992 trillion won and 1.0856 trillion won, respectively. However, 16.5083 trillion won was withdrawn from domestic market-representative ETFs.
The product with the largest inflow of funds this year in the domestic category was 'KODEX Short-Term Bond PLUS,' which attracted a total of 1.017 trillion won. For overseas products, 'TIGER China Electric Vehicle SOLACTIVE' saw an inflow of 846.1 billion won.
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The Exchange plans to expand the supply of various domestic and international sector and equity active ETFs that align with favorable investment trends. Additionally, to absorb investors' demand for direct overseas investment domestically and to meet long-term investment demand through pension accounts, it plans to offer a variety of products related to new industries such as autonomous driving, lithium, telemedicine, and ESG (Environmental, Social, and Governance).
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