[Click eStock] "FnGuide Expected to Benefit from Domestic ETF Growth"

Independent research firm GL Research analyzed on November 20 that FnGuide is expected to be a key beneficiary from the increase in domestic exchange-traded fund (ETF) net asset market capitalization. The firm did not provide an investment opinion or a buy recommendation.

Park Changyoon, a researcher at GL Research, stated, "With the rapid growth of the domestic ETF market, the index division is expected to see steep growth." He added, "As of October, the total net assets of ETFs tracking FnGuide's proprietary indices surpassed 30 trillion KRW, accounting for 10.8% of the total net assets of domestic ETFs in October this year."

He emphasized, "Indices are a core standard for ETF management, and FnGuide sells its proprietary indices to domestic asset management companies. Among ETFs based on FnGuide indices, there are 10 products with net assets exceeding 1 trillion KRW, which is a fivefold increase compared to the previous year."

He further noted, "Among the top five domestic index providers, FnGuide recorded the highest average monthly asset growth rate at 7.7%. Excluding the Korea Exchange, FnGuide is essentially the unrivaled number one among domestic equity index providers." He added, "Since index fees are structured in proportion to assets under management (AUM), FnGuide is a key beneficiary of the growth of the domestic ETF market."

For the third quarter of this year on a consolidated basis, FnGuide posted cumulative sales of 25.89 billion KRW and operating profit of 6.84 billion KRW, up 9.37% and 29.8%, respectively, from the same period last year. He said, "Both sales and operating profit have continued to increase thanks to balanced growth across all business divisions, and net profit is also improving as loss-making affiliates are being restructured." He added, "Next year, annual sales are expected to reach 35 billion KRW, with operating profit of 8.7 billion KRW."

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