Samsung Asset Management Lists KODEX US Financial Tech Active ETF

An ETF focused on innovative financial companies in the United States is set to be listed. Samsung Asset Management has differentiated itself in the theme-based ETF market, which is currently dominated by artificial intelligence (AI)-related stocks, by launching an ETF that includes rapidly growing digital financial companies and emphasizes growth potential.

Samsung Asset Management will list the "KODEX US Financial Tech Active" ETF on May 27. This product is designed based on the "iSelect US Next Generation Financial Tech" index, developed by NH Investment & Securities.

The ETF includes companies among next-generation financial tech firms that have demonstrated rapid growth through innovative business models. In fact, digital financial companies are quickly expanding their business areas and penetrating the traditional financial system. According to Statista Market Insights, internet-only banks are expected to grow at an average annual rate of 41.5% from 2017 to 2028, while the digital payments market is projected to grow at 10.5% annually over the same period.

Notable constituents include Nu Holdings, the parent company of Nubank, which has grown by providing digital banking and fintech services in Latin America, as well as CME Group, the world’s largest derivatives exchange. Other holdings include Visa, which possesses blockchain payment technology; Shopify, an e-commerce platform that also offers payment systems and financial services; and BlackRock, the world’s largest asset manager and issuer of the spot Bitcoin ETF, iShares Bitcoin Trust (IBIT). The ETF also includes PayPal Holdings, which provides online payment and remittance services; Toast, a payment and management platform exclusively for restaurants; Affirm Holdings, the leading BNPL (Buy Now, Pay Later) platform provider; and Global Payments, which offers business-to-business payment services.

The ETF invests in core digital financial technology companies and those with the potential to grow into future innovation platforms. It is actively managed to swiftly respond to changes in US digital finance policy and to secure growth momentum.

Kim Chunheung, a manager at Samsung Asset Management, stated, "Digital financial companies combined with technology are expanding their businesses by entering the domains of traditional financial institutions. This ETF will be a great opportunity to invest in the growing US digital finance industry."