Samsung Asset Management "KODEX TDF2050 Active ETF Net Assets Surpass 100 Billion KRW"

Samsung Asset Management announced on the 8th that the net assets of KODEX TDF2050 Active have surpassed 100 billion KRW. This milestone was reached approximately 2 years and 3 months after its listing on June 30, 2022. As of the end of last year, net assets increased by 75.4 billion KRW from 26.4 billion KRW, a 2.9-fold surge, ranking 5th among 30 TDF2050 products of the same vintage (excluding products listed this year). As of the 7th of this month, the increase of 75.4 billion KRW in net assets ranks 2nd fastest among the same vintage.

The growth of KODEX TDF2050 Active is analyzed as the combined effect of high returns and the advantages of exchange-traded funds (ETFs). Since its listing, KODEX TDF2050 Active has recorded a 39.2% return, ranking 2nd overall among same vintage TDF products, following Samsung Korea-style TDF2050 Securities Investment Trust (UH) at 40.1%. Its year-to-date return is also 17.5%, maintaining a top-tier position. This performance is mainly due to constructing a portfolio centered on major global index ETFs investing in worldwide stocks to secure stability, while additionally incorporating the Nasdaq 100 ETF into assets to pursue relatively high returns. Investing in domestic bonds with various maturities also contributed to stable performance even in a declining market.

Moreover, with a minimum total fee of 0.3% per year, designated price trading allowing transactions at desired prices, a short redemption period of 3 days including trading days, and real-time disclosure of investment assets, the unique advantages of ETFs have become well known to investors, accelerating the inflow of funds from smart pension investors. Unlike general public TDFs, which mostly correspond to overseas funds and have the drawbacks of long trading periods and inability to check portfolios in real time, TDF ETFs allow real-time trading and portfolio verification, distinguishing them from others.

Unlike public TDFs, TDF ETFs are not included in the default option for retirement pensions. Additionally, with a product launch period of about 2 years and the nature of ETF trading, there have been few distributors offering automatic accumulation services, placing them at a relative disadvantage. However, as TDF ETFs consistently demonstrate high performance and securities firms actively introduce services that allow automatic ETF purchases on specific dates even in pension accounts including retirement pensions, it is expected that fund inflows into TDF ETFs will accelerate further in the future.

In fact, currently, four asset management companies have listed a total of 13 TDF ETF products. As of the end of last year, net assets surged by 86.7% from 104.2 billion KRW to 194.5 billion KRW recently. This growth overwhelmingly surpasses the 27.8% increase of public TDFs during the same period.

Additionally, many investors actively utilizing retirement pension accounts such as DC and IRP are known to invest in KODEX TDF2050 Active for 30% allocation to safe assets, thereby increasing their stock investment ratio by approximately 20%.

Kim Dohyung, Head of ETF Consulting Division at Samsung Asset Management, said, “It is very meaningful that KODEX TDF2050 Active ETF has overcome the disadvantage of not being designated as a default option and surpassed 100 billion KRW in net assets just over two years after its launch, based on high returns and convenience.” He added, “As more financial companies recently offer automatic accumulation services for ETFs in pension accounts, not only smart pension investors but also general investors will be able to invest more conveniently in TDF ETFs, which have various advantages.”

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