FunETF "Investors Choose ETFs Based on 'Returns'"

The Most Important Factors When Choosing an ETF
Returns > Management Company > Trading Volume > Costs > Interests

The majority of investors choose exchange-traded fund (ETF) products based on their returns. A more accurate understanding of the relationship between returns and product costs appears to be necessary.

Samsung Asset Management's ETF and fund platform 'FunETF' announced on the 20th that a survey conducted over two days from the 17th to the 18th, targeting about 10,000 individual investors, revealed that returns are considered the most important factor when selecting investment products.

In the FunETF survey, when asked, "What do you consider the most important factor when choosing an ETF?" 63% of respondents chose returns as the top priority. This was followed by ETF management company (13%), trading volume (10%), and costs (9%).

To the question, "Did you know that all costs are already included in the ETF product returns?" 47% answered "have heard of it," which was the highest. 38% responded that they "know the details well," while 15% said they "did not know."

Regarding the survey results, Kim Dohyung, head of the ETF Consulting Division at Samsung Asset Management, said, "It seems that many investors clearly understand that the most important factor in investment behavior aimed at profit is returns."

He added, "The returns of investment products already reflect all related costs, including total fees. Since these returns are reflected as performance in the investor's account, it is advisable to select products based on long-term returns that match one's investment style and objectives."

He emphasized, "Considering that only 38% of respondents answered that they are well aware that all costs, including total fees, are already reflected in returns, it appears necessary to actively provide accurate information to investors."

More investors chose 'trading volume' as a factor in selecting ETFs than those who chose 'costs (including total fees).' Kim explained, "The price difference between buying/selling compared to the net asset value (NAV) is a kind of transaction cost," and "it is presumed that many investors know from experience that this can be larger than the 'costs (including total fees)' presented by the investment product."

Kim interpreted, "Experienced investors tend to choose reliable professional 'ETF management companies' because they believe these companies will provide comprehensive solutions regarding the investment product's returns, trading volume, and fees."

Kim Kyungsik, head of Digital Marketing at Samsung Asset Management, who planned the survey, introduced, "Samsung Asset Management provides correct methods for selecting investment products and investment strategies to investors through FunETF, the website, and its own YouTube channel content," adding, "We will continue to improve content and convenience so that investors can conveniently and thoroughly evaluate returns, costs, and trading volume of investment products using FunETF."

Samsung Asset Management's 'FunETF,' a combination of 'Fund' and 'ETF,' is a platform where users can view ETFs and funds at a glance. It is a mobile-centered application designed to allow anyone to easily and conveniently access information related to representative financial products such as ETFs and public funds.

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