Samsung Asset Management's KODEX US S&P500TR Net Assets Surpass 3 Trillion Won

Samsung Asset Management announced on the 19th that the net assets of the KODEX US S&P500 TR (Total Return, dividend reinvestment) Exchange Traded Fund (ETF), which invests in the US benchmark index S&P500, surpassed 3 trillion KRW, reaching 3.0368 trillion KRW. This marks an increase of 1 trillion KRW in just 25 trading days since net assets exceeded 2 trillion KRW last month.

In the past month alone, 748 billion KRW of funds flowed in. The net buying volume by individual investors also approached 722.2 billion KRW this year, more than 10 times the 64.5 billion KRW recorded during the same period last year.

The rapid increase in investor inflows is due to the KODEX US S&P500 TR’s management structure, which automatically reinvests dividends instead of paying them out, pursuing compound returns, resulting in higher yields compared to general S&P500 index products.

The TR structure eliminates trading fees and actual execution costs caused by bid-ask spreads when investors individually reinvest dividends, so if the underlying index rises over the long term, higher returns can be expected compared to dividend-paying products.

Since its listing in April 2021, this product has achieved a return of 98.4%, including 43.5% over one year and 63.2% over three years, ranking at the top among similar general S&P500 ETFs. In particular, the three-year return outperformed the lowest product by about 1 percentage point, demonstrating the advantages of TR investment.

Additionally, in April this year, to encourage long-term investment by pension investors, the total expense ratio of this product was lowered to an industry-low 0.0099%, which is about one-seventh of the highest fees among similar products, so the performance gap with peer products is expected to widen further.

This TR effect is also evident in the Nasdaq 100 ETF, where the KODEX Nasdaq 100 TR, which has the highest returns among similar general products, attracted the largest inflow of 176.2 billion KRW in the past month.

Kim Do-hyung, Head of ETF Consulting at Samsung Asset Management, said, “The increase of 1 trillion KRW in net assets of KODEX S&P500 TR in just over a month shows that investors have clearly started to recognize the suitability of the TR structure and low-cost benefits for long-term investment.” He added, “We will actively promote that TR-type products can provide stable long-term performance to investors who want to invest in the US benchmark index using tax-advantaged pension accounts and retirement pension accounts.”

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