"Market Volatility Increases, Capital Flows Mainly into Large-Cap Stocks in Developed Countries"
[Asia Economy Reporter Hwang Yoon-joo] Samsung Asset Management announced on the 24th that the total net assets of the ‘KODEX US S&P500TR ETF’ and ‘KODEX US Nasdaq100TR ETF,’ which track major US indices, have surpassed 700 billion KRW.
According to Samsung Asset Management, the KODEX US S&P500TR ETF recorded 379.9 billion KRW, and the KODEX US Nasdaq100TR ETF recorded 326.4 billion KRW, bringing the total net assets to 706.3 billion KRW. The post-listing returns of the two products are 20.2% and 15.3%, respectively.
The KODEX US S&P500TR ETF and KODEX US Nasdaq100TR ETF are the first total return (TR) products simultaneously listed in Korea on April 9 last year. Instead of paying dividends, the dividends from the portfolio stocks are automatically reinvested. Both products are currency-exposed, so they are expected to provide a defensive effect from the dollar’s strength during market downturns, making them popular among investors.
Samsung Asset Management stated that the two products are considered suitable especially for pension investors aiming for long-term investment due to the convenience of automatic reinvestment, abundant liquidity, and low fees.
Im Tae-hyuk, Head of ETF Management at Samsung Asset Management, said, "Recently, with rising interest rates and conflicts between Russia and Ukraine increasing market volatility, rotation toward large-cap stocks in developed countries has been observed. The KODEX US S&P500 TR ETF and KODEX US Nasdaq100 TR ETF are managed with a reinvestment approach to dividends, allowing investors to enjoy the compound effect of reinvested dividends during long-term index growth."
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