ETF Market Grown to 130 Trillion Won, New ETF Listings Doubled This Year

23 Newly Listed ETFs This Year Double Compared to Same Period Last Year
Domestic ETF Net Asset Value Surpasses 130 Trillion Won, Sustaining Growth Trend

The number of newly listed exchange-traded funds (ETFs) this year has nearly doubled compared to the same period last year, indicating rapid growth in the ETF market. Riding this growth, the total net assets of domestic ETFs recently surpassed 130 trillion won.

According to the Korea Exchange on the 28th, 23 new ETFs have been listed so far this year. This figure is nearly double the 12 ETFs listed during the same period last year.

Among the newly listed ETFs, bond-type and thematic ETFs accounted for the majority. Last year at this time, bond-type ETFs were the most frequently listed, followed by index-type and thematic ETFs. However, this year, thematic ETFs were the most numerous, followed by bond-type ETFs, while index-type ETFs have become rare. Among thematic ETFs, semiconductor-related ETFs dominated. WOORI Semiconductor Value Chain Active, SOL Semiconductor Front-end, SOL Semiconductor Back-end, and HANARO Semiconductor Core Process Leading Stocks were listed.

As ETF listings steadily increase, unique ETFs have emerged, attracting attention. ETFs investing in obesity treatment, such as KODEX Global Obesity Treatment TOP2 Plus and KBSTAR Global Obesity Industry TOP2+, have been listed. Launched on the 14th, Samsung Asset Management's KODEX Global Obesity Treatment TOP2 Plus is the first domestic thematic ETF focused on obesity treatments, holding 25% each of leading obesity treatment companies Novo Nordisk and Eli Lilly. It also invests equally in eight global pharmaceutical companies currently conducting clinical trials for obesity treatments approved by the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA). This ETF's net individual purchases exceeded 20 billion won within seven trading days after listing. The KBSTAR Global Obesity Industry TOP2+ ETF, listed on the 27th by KB Asset Management, invests up to 56% in Eli Lilly and Novo Nordisk, leaders in the obesity treatment market. In addition to Eli Lilly and Novo Nordisk, it invests in five major pharmaceutical companies showing significant progress in developing new obesity drugs, as well as top companies in obesity-related exercise and behavioral therapy sales, represented by Lululemon.

Also listed on the same day, the 'KBSTAR Berkshire Portfolio TOP10 ETF' invests in Berkshire Hathaway, led by 'investment guru' Warren Buffett, and its representative investment portfolio. Berkshire Hathaway, acquired by Buffett in 1965, is an insurance company and investment holding company. Based on insurance business revenue, it enhances corporate value through acquiring controlling stakes and minority shares in numerous companies across various sectors such as railroads, consumer goods, and energy, while also engaging in stock investments. The compound annual growth rate of its stock price from the acquisition date to the end of 2022 was approximately 19.8%.

Among the ETFs newly listed this year, excluding the six ETFs listed on the 27th, the average return as of the 26th was 1.16%. WOORI Semiconductor Value Chain Active recorded the highest return with a 9.13% increase, followed by TIGER U.S. Tech TOP10+10% Premium at 8.31%. Funds flowed predominantly into bond-type ETFs. TIGER 1-Year Bank Negotiable Certificate of Deposit Active (Synthetic) attracted the most funds with an inflow of 118.3 billion won, followed by TIGER U.S. Tech TOP10+10% Premium with 91.6 billion won.

The domestic ETF market, which showed rapid growth last year, continues to grow this year with ongoing new listings. The total net assets of domestic ETFs surpassed 130 trillion won on the 19th. After surpassing 100 trillion won in June last year and exceeding 120 trillion won by the end of November, it increased by another 10 trillion won in less than three months. A representative from the asset management industry said, "As the ETF market continues to grow, competition to launch differentiated ETFs is becoming increasingly fierce."