Samsung KODEX TDF2050 Active, Top Fund Inflow This Year

The weight of the domestic TDF (Target Date Fund) market is shifting from public offering types to ETF types. Many investors are choosing ETF-type products, which offer relatively higher returns and are easier to invest in.

Samsung Asset Management announced on the 12th that the KODEX TDF2050 Active ETF ranked first among 33 vintages of 2050 TDFs this year, with an inflow of 56.7 billion KRW.

Since its introduction in 2011, the domestic TDF market has grown steadily with pension investors' interest, reaching 195 products and a scale of 17.6 trillion KRW. While public offering funds dominated, the ETF-type TDF market, including Samsung Asset Management's KODEX TDF2050 Active launched in 2022, has rapidly grown to 16 products with net assets of 372.3 billion KRW in just over two years.

The rapid growth of KODEX TDF2050 Active is attributed to its higher returns compared to public offering types and the convenience of ETF-type TDFs. This product achieved returns of 17.4% in one year, 39% in two years, and 45.7% since its listing in June 2022. It ranked within the top two among products targeting retirement in 2050. The portfolio is composed mainly of major global index ETFs investing in worldwide stocks to secure stability, while also investing in domestic bonds of various maturities, showing stable performance even during market downturns.

The total expense ratio is evaluated at an industry-low level of 0.3% per annum. Due to the nature of ETFs, investors can trade at their desired prices, and the redemption period is short, including three trading days. Additionally, the advantage of real-time disclosure of investment asset lists has been highlighted, which is interpreted as a significant increase in pension investors' capital inflows. The TDF ETF products managed by Samsung Asset Management are considered highly stable due to abundant trading volume. This is an achievement that overcomes the weakness of not being included in the default options for retirement pensions.

For investors actively utilizing retirement pension accounts such as DC and IRP, including KODEX TDF2050 Active in the safe asset allocation, which must be 30% of total investment assets, can effectively increase the stock investment ratio by about 20%.

Ma Seung-hyun, a manager at Samsung Asset Management, said, "The KODEX TDF series has proven the growth potential of ETF-type TDFs in the pension market," adding, "We will continue to launch ETF-type TDF products tailored to the needs of various investors to transform the pension investment environment."

Samsung Asset Management's KODEX TDF ETF series holds the largest share in the ETF-type TDF market and leads the market. Currently, the net assets of KODEX TDF2050/2040/2030 are 202 billion KRW, 34.8 billion KRW, and 31.6 billion KRW respectively, totaling 268.4 billion KRW. This accounts for 72.1% of the total TDF ETF market of 372.3 billion KRW.