KODEX US Nasdaq 100, Net Assets Increase by 1 Trillion Won in 8 Months with Highest Returns

Samsung Asset Management announced on the 17th that the net assets of the KODEX US Nasdaq 100 ETF, which invests in the US Nasdaq 100, have increased by 1 trillion KRW in 8 months, reaching 2 trillion KRW.

As of the closing price on the 14th, the net assets stood at 2.0614 trillion KRW, marking a 106% growth compared to 1.002 trillion KRW on June 12 last year. It is the fastest growing Nasdaq 100 ETF product with net assets exceeding 1 trillion KRW. During the same period, the cumulative net purchases by individuals also reached 500 billion KRW.

KODEX US Nasdaq 100 is an ETF that tracks the Nasdaq 100 index, known as a representative US technology stock index, investing in major US big tech companies such as Microsoft, Apple, and Nvidia. It applies the lowest total expense ratio of 0.0062% among similar products and, despite being an index-type product, records remarkable performance by leveraging Samsung Asset Management’s unique management know-how.

KODEX US Nasdaq 100 has recorded returns of 34% over 1 year, 84.3% over 3 years, and 112.4% since its listing in April 2021. It shows the highest performance among similar general passive ETFs.

Following the Ministry of Economy and Finance’s ‘2024 Tax Law Amendment Follow-up Enforcement Decree Revision’ announced last month, KODEX US Nasdaq 100 changed its product type from TR type (automatic reinvestment of dividends) to dividend payment type on the 24th. The Ministry announced through the legislative notice that the scope of dividend retention for TR-type overseas ETFs will be changed to require interest/dividend income to be settled and distributed at least once a year, applying this from interest/dividend generated from July this year. The first dividend will be paid on the second business day of May based on the last business day of April. Thereafter, quarterly dividends will be paid based on January, April, July, and October.

Since the TR type automatically reinvests dividends, it has higher investment efficiency compared to the type that pays dividends in cash, so many investors expressed regret over the conversion of KODEX US Nasdaq 100 to the dividend payment type.

Even after the type conversion, as the product continued to show relatively high performance in returns reflecting all costs incurred in product management, individual buying demand concentrated on KODEX US Nasdaq 100, resulting in net purchases exceeding 60 billion KRW, the highest among similar products.