Codex Sector ETF Exceeds 600 Billion Won... Healthcare Up 67% Since Early Year

The series, which numbered 3 as of late June 2006, has now increased to 16

[Asia Economy Reporter Kum Boryeong] Samsung Asset Management's KODEX sector exchange-traded funds (ETFs) have surpassed 600 billion KRW in net assets.

Samsung Asset Management announced on the 30th that as of the 27th, the total net assets of 16 KODEX sector ETF series listed on the KOSPI market reached 634.8 billion KRW. This represents a tenfold growth since June 2006, when three KODEX sector series ETFs were first listed with net assets in the 60 billion KRW range.

The KODEX sector ETF series tracks sector indices announced by the Korea Exchange. With a diverse lineup covering all industries, it offers the advantage of enabling investment across various domestic industrial sectors.

KODEX Healthcare, which invests in the healthcare sector that has gained more attention since the COVID-19 pandemic, recorded a year-to-date return of 67.6%, reaching its highest level. KODEX Securities, benefiting from the domestic and international stock investment boom that gave rise to the neologisms 'Donghak Ant' and 'Seohak Ant,' recently showed a strong rebound with a year-to-date return of 14.7%. Meanwhile, KODEX Bank has seen its total net assets increase by more than 100 billion KRW over the past three months, driven by investors seeking stable income in a low-interest-rate environment.

The KODEX sector ETF series has been expanding its product diversity. The series, which consisted of three ETFs as of the end of June 2006, has now grown to 16.

Lee Daehwan, a manager at Samsung Asset Management, said, "Investors tired of the high volatility of individual stocks have started to show great interest in sector ETFs, which allow easy and intuitive diversified investment. Given that sector ETFs can be used for various investment strategies such as sector rotation and core-satellite strategies from the perspective of institutional investors, the growth trend of sector ETFs is expected to continue." He added, "As leading industries continue to change after COVID-19, reducing opportunity costs through sector ETF investment before analyzing representative stocks within sectors is also a way to utilize sector ETFs."