Investment in Promising Fields like Electric Vehicles and Batteries... Returns Also Surpass KOSPI
[Asia Economy Reporter Minwoo Lee] Domestic individual investors have net purchased more than 60 billion KRW worth of eight newly launched active equity exchange-traded funds (ETFs) since last month.
According to the Korea Exchange on the 20th, individual investors net bought 23 billion KRW worth of the 'KODEX K-Miraecha Active' ETF over the one-month period starting from the 25th of last month. This ranks sixth in net purchases among ETFs during the same period.
In addition, they acquired a total of 62.6 billion KRW worth of newly launched active ETFs including 'TIGER Future Mobility Active' (11.9 billion KRW), 'KODEX K-Renewable Energy Active' (10.3 billion KRW), 'TIGER Global BBIG Active' (7.8 billion KRW), 'TIMEFOLIO Kstock Active' (3.7 billion KRW), 'TIMEFOLIO BBIG Active' (2.7 billion KRW), 'Navigator Eco-friendly Automobile Value Chain Active' (1.8 billion KRW), and 'Navigator ESG Active' (1.4 billion KRW). These active ETFs, which aim for excess returns through fund managers' discretion rather than simply tracking an index, are gaining popularity.
It is analyzed that the focus on future growth sectors such as electric vehicles, renewable energy, battery, bio, internet, gaming (BBIG), and ESG (environment, social, governance) contributed to this trend. The prior popularity of active ETFs like the U.S. asset management firm's 'ARK Innovation ETF' has also increased interest in active ETFs.
The returns were also solid. The 'KODEX K-Miraecha Active' rose by +6.90% over the past month. 'TIGER Future Mobility Active' (+6.56%), 'Navigator Eco-friendly Automobile Value Chain Active' (+6.39%), and 'TIGER Global BBIG Active' (+6.15%) also posted gains in the 6% range. 'TIMEFOLIO BBIG Active' (+4.69%), 'KODEX K-Renewable Energy Active' (+4.55%), and 'TIMEFOLIO Kstock Active' (+3.99%) all outperformed the KOSPI's rise of 3.93% during the same period when compared to their listing reference prices.
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