Samsung Asset Management Lists KODEX US Seohak Ant ETF

Samsung Asset Management announced on the 27th that it will list the KODEX US Seohakgaemi ETF. This ETF invests in the 25 stocks most preferred by ‘Seohakgaemi,’ individual investors who directly invest in US and other overseas stocks.

The KODEX US Seohakgaemi ETF tracks the iSelect Seohakgaemi Index. This index was independently developed by Samsung Asset Management in collaboration with NH Investment & Securities. It selects the top 25 companies each month based on the amount of US stock custody at the Korea Securities Depository among stocks listed on the New York Stock Exchange and NASDAQ. It adopts the so-called ‘Seohakgaemi weighting method,’ which determines the inclusion ratio weighted by custody amount.

Existing market representative indices have the drawback of not being able to respond agilely according to fixed rules even when economic phases change and trends shift. The KODEX US Seohakgaemi ETF is composed solely of stocks invested in by Seohakgaemi, without being limited to specific sectors or themes, allowing it to quickly reflect the flow of investors who respond flexibly according to market conditions.

Looking at the portfolio, it includes big tech companies that have recently driven the US market such as Tesla, Apple, and Nvidia, as well as companies familiar to domestic investors that have recently recorded strong performance, such as Walt Disney, Boeing, and Coca-Cola. It also includes small growth stocks like IonQ and Palantir, which are rarely found in major US indices.

Since the COVID-19 pandemic, domestic investors’ interest and trading volume in US stocks have increased significantly. As of the first half of 2023, the amount of US stocks held by domestic individual investors surpassed 85 trillion won, approximately 65 billion dollars. As a result of this increased interest, the iSelect Seohakgaemi Index recorded a return of 80.9% year-to-date, significantly outperforming the Standard & Poor’s (S&P) 500 Index and NASDAQ 100 Index, which recorded 23.8% and 53.4%, respectively.

The KODEX US Seohakgaemi ETF can be invested in up to 100% through individual pension accounts and up to 70% through retirement pension and IRP accounts. When investing through pension accounts, investors can benefit from low tax rates of 3.3% to 5.5% at the time of pension receipt and tax deferral effects. The total expense ratio of the KODEX US Seohakgaemi ETF is currently 0.45% and will be lowered to 0.25% on the 29th.

Lee Junjae, manager at Samsung Asset Management, said, "The KODEX US Seohakgaemi ETF is the first domestic ETF that invests in the ‘national portfolio’ created as a result of the collective intelligence of millions of Seohakgaemi. It is a sustainable strategy that responds agilely to trends and is not limited to a single theme." He added, "This product is suitable for investors who are interested in US stocks but are unsure which stocks to buy or lack the time to study and follow real-time trends."