Overseas Investment ETF·ETN Approaching 33 Trillion Won... Popular for Low Fees

Korea Exchange Compiles 483 Overseas ETFs and ETNs Listed Domestically
Selective Investment Possible in Promising Sectors Like AI, Semiconductors, and Secondary Batteries

The total assets of exchange-traded funds (ETFs) and exchange-traded notes (ETNs) investing in overseas assets have reached 33 trillion won. As interest in overseas investment grows recently, these products are gaining attention for being relatively cost-effective compared to direct investment.

According to the Korea Exchange on the 20th, as of the end of last month, the net asset value and total indicative value of 483 overseas-type ETF and ETN products listed domestically amounted to 32.7056 trillion won (24.7304 trillion won in ETFs and 7.9752 trillion won in ETNs).

Among overseas-type ETF and ETN products, the most frequently listed items are those linked to major overseas stock market indices such as the U.S. Standard & Poor's (S&P) 500 Index or Europe's STOXX 50 Index. ETFs and ETNs are traded in real-time on exchanges like regular stocks, offering the advantage of easy investment in overseas stock markets. Global diversification is also possible by setting country-specific weights, such as 50% Korea, 30% U.S., and 20% China. Even when tracking the market representative index of the same country, there are currency-exposed products that reflect exchange rate movements and currency-hedged products designed to avoid exchange rate impact, allowing investors to manage currency risk according to their investment preferences.

Selective investment is possible not only by country but also in promising sectors such as artificial intelligence (AI), semiconductors, and secondary batteries. Numerous ETFs investing in promising companies in the U.S., China, and other countries are also listed domestically. Investing through these ETFs eliminates the hassle of currency exchange and time differences that occur when directly investing in overseas stocks, and allows investment at a lower cost. Interest in energy, agricultural products, and raw materials investment is also on the rise.

The biggest advantage of investing through overseas-type ETF and ETN products listed on the Korea Exchange is their low fees. Recently, fees for ETFs tracking major overseas indices such as the S&P 500 and Nasdaq 100 have been reduced to around 0.02?0.07%, which is among the lowest globally for ETFs tracking the same indices. In particular, it is advised that investors using pension savings or retirement pension accounts consider these low-fee overseas ETFs as suitable investment options.

A Korea Exchange official stated, "The Korean ETF market is growing, surpassing a total net asset value of 80 trillion won," and added, "The latest information on ETFs can be found on the Korea Exchange ETF Naver Post."

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