Samsung Asset Management's KODEX TDF2050 Surpasses 50 Billion KRW in Net Assets

Samsung Asset Management announced on the 2nd that the net assets of the KODEX TDF2050 Active Exchange-Traded Fund (ETF) nearly doubled within one quarter, reaching 51 billion KRW. This ranks seventh in size among 30 TDF2050 products of the same type, including public funds, and represents a 94% increase from 26.2 billion KRW at the end of last year, marking the highest growth rate among the top 10 products by net assets.

The Target Date Fund (TDF), a long-term installment pension investment product, has been recognized as the mainstream TDF type, with more than 10 trillion KRW in assets under management, primarily through general public funds included in default options. The ETF-type TDF has rapidly grown within 21 months since its launch, establishing itself as a new investment alternative for investors.

Although the KODEX TDF2050 Active is an ETF-type product and is not included in the default options for retirement pensions, it attracted 20 billion KRW in new funds, ranking third in net fund inflows following Samsung Korea-style TDF2050, which recorded the highest inflow of 23.4 billion KRW among 30 products of the same vintage. The 20 billion KRW inflow in the first quarter exceeds 1.6 times the total inflow of 12.8 billion KRW for the entire previous year.

Since this product targets the year 2050, most investors are young pension investors considering long-term investment, which implies relatively higher growth potential. In fact, inflows through bank channels mostly come from pension trust accounts using automatic purchase systems, with net purchases of 800 million KRW in the six months following its listing in 2022, 4.5 billion KRW in 2023, and 4.8 billion KRW in the first quarter of this year. As banks’ ETF automatic purchase systems are expected to become more active, buying momentum from young long-term installment investors is anticipated to expand further.

The rapid inflow of funds from young investors into KODEX TDF2050 Active can be attributed to various factors such as top-tier returns, low total fees, investment convenience, transparent portfolio management, and the ability to use it as a 30% safe asset investment product within retirement pension accounts.

In fact, this product has recorded a one-year return of 22.74% and a 21-month return since inception of 29.38%, ranking among the top in all TDF2050 products. Additionally, its total fee cost is the lowest in the industry among the same vintage at 0.3% per annum, which is a significant advantage for investors in terms of achieving higher performance through long-term investment.

Kim Dohyung, Head of ETF Consulting at Samsung Asset Management, said, “Since pension products involve long-term installment investments until at least age 55, utilizing the volatility of high-quality assets can achieve high performance. We recommend that young smart investors increase their returns by investing in the KODEX TDF2050 Active, which has a high stock allocation in retirement pensions, through installment investments.”

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