Year-End ETF Launch Boom... Catch the Beginner Investors

[Asia Economy Reporter Hwang Junho] As the KOSPI wavers without finding a clear direction, a flood of exchange-traded funds (ETFs) aimed at capturing individual investors, known as "gaemi," has emerged.

According to the asset management industry on the 23rd, major asset managers launched 13 ETFs this month. In December last year, when the ETF base began to expand, about 10 ETFs were introduced to attract investors, so this number is higher. Last month, six products were launched.

As Donghak Gaemi sought ETFs as an exit strategy for direct investment, asset managers released products tailored to their preferences. As of the previous day, the total net assets of the entire ETF market reached 71 trillion won, growing about 36.52% compared to the beginning of the year.

In particular, there were eight products designed to allow gaemi, who have high interest but lack information about advanced markets such as the US and China, to invest a portion of their assets overseas. Among these, products themed on topics gaining attention in the domestic stock market are popular. Mirae Asset Global Investments launched 'TIGER Global Metaverse Active,' investing in global metaverse companies, securing net assets of 57.998 billion won within three days of launch. 'KODEX NASDAQ 100 Leverage' was also listed on the 7th, increasing net assets to about 45.696 billion won.

Most of the newly launched ETFs by asset managers were also designed to absorb assets held in retirement pension accounts. This can be seen as a preemptive response considering the introduction of the default option (pre-designated management system) for retirement pensions next year. Among the 13 products, those excluding leverage and inverse ETFs can be traded in pension accounts.

Son Ha-yeon, a researcher at Mirae Asset Securities, said, "Although stock market volatility may remain high next year due to factors such as US interest rate hikes, themes expected to have structural growth are less affected by economic cycles and perform well," adding, "Long-term growth themes such as metaverse, blockchain, and electric vehicles should be noted, and considering low-volatility and REIT ETFs that can enhance stability amid increased volatility is worthwhile."

This content was produced with the assistance of AI translation services.