Launched by 4 Asset Management Firms, Selling Fast
Game and Media Content Stocks
Account for 70-80% of Portfolio Weight
[Asia Economy Reporter Minji Lee] This year, as the 'metaverse' has established itself as a promising theme in the stock market, four asset management companies launched metaverse ETFs (exchange-traded funds) composed solely of domestic companies, attracting funds worth 7 billion KRW in just one day.
According to the Korea Exchange on the 14th, domestic individual investors purchased 7 billion KRW worth of four newly listed metaverse-related ETFs (TIGER Fn Metaverse, KODEX K-Meta Active, KBSTAR iSelect Metaverse, HANARO Fn K-Metaverse mz) on the same day. These ETFs ranked among the top individual ETF net purchases on their first day of listing, proving investors' strong interest in the metaverse. Among them, the ETFs that attracted the most funds were TIGER Fn Metaverse and KODEX K-Meta Active Fund, launched by major firms Mirae Asset Global Investments and Samsung Asset Management, with 3.8 billion KRW and 2.8 billion KRW respectively.
The metaverse refers to communication in virtual spaces beyond reality. It has rapidly emerged as a promising industry since face-to-face contact became difficult due to the spread of COVID-19. Governments and companies hold meetings in virtual spaces, and artists actively communicate with fans in designated virtual spaces. In Korea, the gaming and entertainment industries are leading businesses utilizing the metaverse.
Looking at the newly launched ETFs, all four portfolios consist of 70-80% gaming and media content-related stocks. Since these products were introduced before the metaverse was fully established across domestic industries, at first glance, they seem similar to existing K-media content ETF products that include companies like SM, HYBE, and WYSIWYK Studio. However, each ETF differentiates itself by adding IT companies and large platform companies closely related to the metaverse theme.
Examining the stocks heavily included in these ETFs, TIGER Fn Metaverse holds large companies such as LG Display, LG Innotek, Kakao, and CG and visual effects (VFX) company Dexter. KODEX K-Meta Active includes Africa TV, J Contentree, Wemade, and NEW with significant weights. HANARO Fn K-Metaverse mz incorporates large-cap stocks like Hyundai Mobis and SK Telecom to reduce volatility. KBSTAR iSelect Metaverse notably includes Netmarble and CJ ENM with over 5% weight. Overlapping stocks include NAVER (Zepeto), NCSoft (Universe), and Pearl Abyss (Dokkaebi), all of which own metaverse platforms.
Researcher Jongjin Moon of Kyobo Securities explained, “In the first half of this year, metaverse-themed ETFs were first listed in the U.S., drawing attention to the theme. Although no clear leading stocks related to the metaverse have yet been observed domestically, it is important to note the continuous strengthening of passive fund inflows into thematic ETFs.”
Meanwhile, although fund performance cannot be judged solely by one-day returns, the fund with the highest return on the listing day was HANARO Fn K-Metaverse mz (1.45%), followed by KBSTAR iSelect Metaverse (1.2%), TIGER Fn Metaverse (0.8%), and KODEX K-Meta Active (-0.25%). The total expense ratio was highest for the active ETF KODEX K-Meta Active at 0.5%, while the others were all 0.45%.
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