Samsung Asset Management's KODEX TDF ETF 3 Types Surpass 200 Billion KRW in Net Assets

Samsung Asset Management announced on the 10th that the net assets of the three KODEX TDF ETFs have surpassed 200 billion KRW. This milestone was reached approximately 30 months after their listing in June 2022.

Since the introduction of 'Target Date Funds (TDF)' to the domestic market in 2011, as of January this year, there are 194 products with net assets totaling 16.8 trillion KRW.

Samsung Asset Management launched 10 TDF ETF products, including the three KODEX TDF ETFs, in June 2022. Currently, a total of 13 products are listed, with net assets growing to 271 billion KRW.

Samsung Asset Management operates three types of KODEX TDF Active ETFs according to retirement target dates (vintages): KODEX TDF2050 Active, KODEX TDF2040 Active, and KODEX TDF2030 Active. Over the past year, the fund inflow reached 136.1 billion KRW, accounting for about 5.1% of the total inflow of 2.6 trillion KRW across all 194 TDF products.

In the case of KODEX TDF2050 Active, 111.9 billion KRW flowed in over one year, ranking second among 32 similar products. It accounted for 16.8% of the market share. In October last year, the one-month fund inflow reached 10.9 billion KRW, ranking first among all TDFs, continuing its rapid growth trend.

The growth of KODEX TDF Active is interpreted as being due to the top-tier performance returns and the unique advantages of ETF-type products compared to public TDFs becoming widely recognized by smart pension investors.

Since their listing, KODEX TDF2050/2040/2030 have recorded returns of 48.7%, 41.6%, and 33.1%, respectively, ranking high among similar product groups. KODEX TDF Active has secured stability by constructing a portfolio centered on major global index ETFs investing in worldwide stocks. By additionally incorporating the Nasdaq 100 ETF into its assets, it pursues relatively high returns while investing in domestic bonds with various maturities, demonstrating stable performance even in declining markets.

With a minimum annual total fee of 0.3%, designated price trading that allows investors to trade at desired prices, a short redemption period of three days including the trading day, and real-time disclosure of investment assets, the ETF offers unique advantages. As these benefits became known to TDF investors, the inflow of funds from smart pension investors accelerated.

Unlike general public TDFs, TDF ETFs have not been included in the default options for retirement pensions, have a relatively short product launch period of about two years, and due to the nature of ETF trading, few distributors offer automatic accumulation services, making investor inflow relatively difficult. However, as TDF ETFs consistently demonstrate high performance and securities firms actively introduce services that automatically purchase ETFs on specific dates even in pension accounts including retirement pensions, the inflow of funds into TDF ETFs is expected to accelerate further.

Many investors actively utilizing retirement pension accounts such as DC and IRP are reportedly investing in KODEX TDF2050 Active for 30% allocation to safe assets, thereby increasing their stock investment ratio by about 20%.

Kim Dohyung, Head of ETF Consulting at Samsung Asset Management, said, "It is significant that KODEX TDF Active overcame the disadvantage of not being designated as a default option and surpassed 200 billion KRW in net assets just 30 months after its launch, based on its high returns and convenience."

He added, "As more financial companies recently offer automatic ETF accumulation services in pension accounts, smart pension investors can invest more conveniently in TDF ETFs, and the ETF trend in the TDF market is expected to intensify."