Samsung Asset Management Lowers Fees for 'KODEX Korea Value Up'... "Industry's Lowest Level"

Samsung Asset Management announced on the 13th that it will lower the total expense ratio of the KODEX Korea Value-Up Exchange Traded Fund (ETF) to an industry-low level of 0.008%. The ETF was listed on the 4th of last month. With an inflow of over 100 billion KRW, it currently records net assets of 199.6 billion KRW.

The KODEX Korea Value-Up ETF is based on the Korea Value-Up Index, which consists of 100 stocks that have received excellent evaluations in profitability, shareholder returns, and market valuation, and actively implement a ‘proactive shareholder return’ policy.

The KODEX Korea Value-Up ETF is managed to faithfully reflect the underlying index flow in line with the passive style. In fact, since its listing, while the Korea Value-Up Index recorded -1.13%, the ETF has achieved a slightly better return of -1.1%, outperforming by 0.03 percentage points.

This performance can be considered a hallmark of a leading passive ETF, as the return differences compared to the underlying indices of similar passive ETFs range from -0.08 to -0.39 percentage points. This performance gap results from managing the investment weights of all stocks according to the underlying index in a passive style, unlike some products that have reduced the weighting of Korea Zinc compared to the underlying index, resulting in lower performance.

Meanwhile, the Korea Value-Up Index has recorded a 1.37 percentage point superior performance compared to the KOSPI200, which showed a -2.5% return during the same period.

Im Tae-hyuk, Executive Director and Head of ETF Management at Samsung Asset Management, said, “The KODEX Korea Value-Up ETF shows stable management performance linked to the underlying index, in line with a traditional passive product. Given its abundant liquidity, the reduction of the total expense ratio to an industry-low level of 0.008% will have a positive effect on investors interested in Korea Value-Up.” He added, “We will continue to strive to improve the long-term returns of investors who support and invest in the Korean stock market and to further enhance the liquidity environment.”

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