Samsung KODEX US S&P500, Net Assets Quadrupled to 4 Trillion Won in One Year

Samsung Asset Management announced on the 19th that the net assets of the KODEX US S&P500 ETF, which invests in the US S&P500, have grown more than fourfold in one year, surpassing 4 trillion KRW.

Net assets, which were around 792.6 billion KRW a year ago, have grown to 4.0021 trillion KRW. This is the highest growth rate among the 18 equity ETFs with net assets exceeding 1 trillion KRW. The KODEX US S&P500 rose in net asset ranking among all equity ETFs from 18th place a year ago to 4th place.

The remarkable growth of KODEX US S&P500 is due to its differentiated performance in returns reflecting all costs incurred in product management. This product applies a low total expense ratio of 0.0062%. There is a noticeable difference in actual returns compared to similar passive products. The 1-year return of KODEX US S&P500 is 32.7%, 3-year return is 74.5%, and since its listing in April 2021, the return is 101.9%, all of which are the highest compared to similar products. The maximum return difference reached 1.12 percentage points (P) for 1 year, 1.02 P for 3 years, and 2.05 P since its listing in April 2021.

Despite being a general product that tracks a representative index, it has attracted more investors as it is known for recording differentiated return performance by utilizing Samsung Asset Management’s unique management know-how. For individual investors, net purchases have reached 922.5 billion KRW in one year, accumulating to 1.3 trillion KRW. The scale is expected to increase further when net purchases from retirement pension accounts, which are not included in the tally, are added.

KODEX US S&P500 invests in the S&P500 index, which consists of 500 large-cap blue-chip companies representing the US stock market. The portfolio is well diversified across sectors such as technology, healthcare, finance, and consumer goods, including companies like Apple, Nvidia, UnitedHealth Group, Eli Lilly, Visa, JP Morgan Chase, ExxonMobil, and Costco.

Following the Ministry of Economy and Finance’s announcement of the ‘2024 Tax Law Amendment Follow-up Enforcement Decree Revision’ last month on the 24th, the product type was changed from TR type (automatic dividend reinvestment) to dividend payment type. 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.

Considering the sudden type change, Samsung Asset Management lowered the total expense ratio to 0.0062% on the 7th to provide a good investment opportunity for existing investors’ asset growth and new long-term pension investors.

Kim Dohyung, Head of ETF Consulting at Samsung Asset Management, introduced, “For overseas investment products, in addition to fixed costs such as total expense ratio, other costs, trading fees, and currency exchange costs occur irregularly.” He added, “It is advisable to select suitable products based on returns reflecting all costs and according to the investor’s own investment objectives and preferences.”

He emphasized, “The S&P500 is the most preferred product to the extent that individual investors recognize it as a basic investment target,” and “We will strive to ensure that KODEX US S&P500 continues to deliver the best returns in the future.”