'KOSDAQ Active ETF' Competition Heats Up... Significant Differences in Holdings

Following Samsung and Timefolio, Hanwha Asset Management Joins the Market
Top Holdings Differ Significantly Across the Three ETFs
Only Padu, Rainbow Robotics, and Algenomics Included in Two Portfolios

KOSDAQ active ETFs have delivered different results depending on their portfolio composition. On the previous day, the KOSDAQ index fell by 1.29% compared to the previous session, but PLUS KOSDAQ150 Active ended its debut day up 0.63%. Meanwhile, KoAct KOSDAQ Active and TIME KOSDAQ Active dropped by 3.42% and 2.01%, respectively. Previously, on their listing day, KoAct KOSDAQ Active had risen 11.94%, and TIME KOSDAQ Active had gained 4.13%. Jae Hong Yoon, a researcher at Mirae Asset Securities, commented, "While Samsung Active and Timefolio both focus on healthcare and semiconductors, there are clear differences in their detailed strategies. For investors who want a concentrated portfolio centered on leading sectors such as bio and semiconductors, TIME KOSDAQ Active is appropriate, whereas KoAct KOSDAQ Active is suitable for those looking to invest more broadly in industries benefiting from policy support."

Since their initial launch on March 10, KOSDAQ active ETFs have been rapidly attracting funds. As of the previous day, KoAct KOSDAQ Active ranked first among ETFs purchased by individual investors over the past week with a net purchase amount of KRW 843.5 billion, followed by TIME KOSDAQ Active at KRW 392.9 billion. On March 17 alone, individuals made a net purchase of KRW 13 billion in PLUS KOSDAQ150 Active.

Competition among KOSDAQ active ETFs, which have been attracting significant individual investor funds over the past week, is intensifying. Hanwha Asset Management is newly listing its KOSDAQ150 Active ETF, and with differences in the detailed portfolio compared to earlier entrants, investor attention is growing.

According to the asset management industry as of March 18, Hanwha Asset Management listed the 'PLUS KOSDAQ150 Active' ETF on March 17. Unlike the KOSDAQ active ETFs from Samsung Active and Timefolio Asset Management, which both use the 'KOSDAQ Index' as their benchmark, PLUS KOSDAQ150 Active is characterized by using the 'KOSDAQ150 Index' as its benchmark.

Unlike passive ETFs, which track the underlying index exactly, active ETFs aim to outperform the benchmark index by having fund managers select stocks and adjust their weightings. A Hanwha Asset Management official explained, "The companies included in the KOSDAQ150 Index are relatively high-quality. Since this index is expected to see inflows from pension funds and foreign investors in line with the government's KOSDAQ revitalization policy, long-term returns could potentially be better than the broader KOSDAQ Index."

Hanwha Asset Management plans to use 'negative screening' to filter out marginal and distressed companies based on financials within the KOSDAQ, after which fund managers will select stocks for a 'concentrated investment' approach. They will also employ a 'sector-neutral' strategy that keeps sector weights similar to the KOSDAQ150 and its key sectors, preventing excessive bias toward specific themes. Additionally, they intend to generate alpha returns by discovering 'Next 150' stocks—those not yet in the index but with the potential for future inclusion.

From a portfolio perspective, there are clear differences compared to the previously launched KOSDAQ active ETFs. According to the list of holdings released that day, the top five constituents of PLUS KOSDAQ150 Active were Seers Technology (5.57%), Vinatech (5.47%), WCP (4.77%), SPEAR (4.04%), and Park Systems (3.58%). Rather than focusing on the largest KOSDAQ stocks by market capitalization, the ETF includes a variety of sectors such as medical AI, energy materials and components, secondary batteries, special alloys, and precision equipment.

Among the top holdings of the three KOSDAQ active ETFs, only three companies (Padu, Rainbow Robotics, and Algenomics) overlap, highlighting the differences in their portfolios.

'KoAct KOSDAQ Active' from Samsung Active Asset Management is composed mainly of small and mid-cap IT stocks, including Sungho Electronics (8.78%), Qurient (8.47%), and Sungwoo Hitech (2.77%). The plan is to allocate 70-80% of the portfolio to high-growth small and mid-cap stocks, with the remaining 20-30% invested in value stocks that are undervalued relative to earnings growth.

'TIME KOSDAQ Active' from Timefolio Asset Management focuses on large-cap bio and major KOSDAQ stocks, such as ABL Bio (6.49%), SMCND Pharm (6.09%), and Rainbow Robotics (5.55%). A Timefolio Asset Management official explained, "The key to the current KOSDAQ market is ultimately the KOSDAQ stimulus package. We believe the greatest beneficiaries of this stimulus will likely be the large-cap stocks representing the market, and therefore, we have constructed a portfolio centered on major large-cap stocks within KOSDAQ."

KOSDAQ active ETFs have delivered different results depending on their portfolio composition. On the previous day, the KOSDAQ index fell by 1.29% compared to the previous session, but PLUS KOSDAQ150 Active ended its debut day up 0.63%. Meanwhile, KoAct KOSDAQ Active and TIME KOSDAQ Active dropped by 3.42% and 2.01%, respectively. Previously, on their listing day, KoAct KOSDAQ Active had risen 11.94%, and TIME KOSDAQ Active had gained 4.13%. Jae Hong Yoon, a researcher at Mirae Asset Securities, commented, "While Samsung Active and Timefolio both focus on healthcare and semiconductors, there are clear differences in their detailed strategies. For investors who want a concentrated portfolio centered on leading sectors such as bio and semiconductors, TIME KOSDAQ Active is appropriate, whereas KoAct KOSDAQ Active is suitable for those looking to invest more broadly in industries benefiting from policy support."

Since their initial launch on March 10, KOSDAQ active ETFs have been rapidly attracting funds. As of the previous day, KoAct KOSDAQ Active ranked first among ETFs purchased by individual investors over the past week with a net purchase amount of KRW 843.5 billion, followed by TIME KOSDAQ Active at KRW 392.9 billion. On March 17 alone, individuals made a net purchase of KRW 13 billion in PLUS KOSDAQ150 Active.

With KOSDAQ active ETFs being actively launched and traded, it is expected that capital will begin to flow into previously overlooked KOSDAQ stocks as well. Woo Yeol Park, a researcher at Shinhan Investment Corp., noted, "Up until now, most KOSDAQ ETFs were index-based, tracking the KOSDAQ150, which concentrated capital inflows into these 150 stocks, and there were no active ETFs where fund managers could use discretion to select high-quality stocks. By contrast, KOSDAQ active ETFs now allow capital inflow effects to be expected even among the 1,800 small and mid-cap KOSDAQ stocks."

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