Amplify "US ETF Market to Surpass Mutual Funds by 2027"

US ETF Industry Grows Over 19% Annually for 20 Years
Expected to Surpass Mutual Funds Within 5 Years
US ETF Market Accounts for 71% of Global Size

[Asia Economy Reporter Yoonju Hwang] U.S. ETF asset manager Amplify announced that the U.S. exchange-traded fund (ETF) market size will surpass mutual funds in five years and stated its intention to strengthen collaboration with Samsung Asset Management.

On the 19th, Amplify held a press briefing in Seoul at the Federation of Korean Industries building in Yeouido, together with its partner Samsung Asset Management, emphasizing that "the number of ETF managers increased from 80 in 2000 to 2,690 in 2021, with an average annual growth rate of about 19.22%."

During the same period, the number of mutual fund companies grew from 8,349 to 8,887 in 2021, with an average annual growth rate of about 0.31%. Based on the growth trend of the ETF market, Amplify predicted that the U.S. ETF market will surpass the mutual fund market size by 2027.

Amplify visited Korea to celebrate the 20th anniversary of Samsung Asset Management's KODEX and to further solidify cooperation between the two companies. At this briefing, Amplify assessed the current status of the U.S. ETF market and forecasted the future market based on its ongoing growth.

According to Amplify, as of the end of last year, the U.S. ETF market accounts for about 71% of the global ETF market size and has been steadily growing at a rapid pace for over 20 years. Historically, when the market declines, existing mutual fund, stock, and bond holders reevaluate their portfolios and experience the advantages of ETFs, leading to an increase in ETF net assets during market rebounds.

In other words, once the market weathers difficulties, the shift to ETFs accelerates. The U.S. ETF market size, which was $1,339 billion in 2012, grew by 371% over ten years to approximately $6,306 billion (about KRW 8,962 trillion) as of September 2022.

Christian Magoon, CEO, stated, "Through continuous collaboration with Samsung Asset Management, we plan to consistently introduce innovative ETF products in the Korean and Asian markets," adding, "Amplify and Samsung Asset Management, as global leading asset managers, will undertake various initiatives to expand their presence."

Meanwhile, Samsung Asset Management began collaboration by acquiring shares of Amplify in April. They localized Amplify’s mega-hit ETF products, the 'BLOK ETF' and 'DIVO ETF,' for the Asian and Korean markets, respectively. In July, they listed the ‘Samsung Blockchain Technology ETF’ in the Hong Kong market, the first of its kind in Asia, and in September, launched the ‘Samsung KODEX U.S. Dividend Premium Active ETF’ in the domestic market.

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