Samsung Asset Management Announces KODEX Securities ETF Surpasses KRW 300 Billion in Net Assets

Driven by favorable conditions in the domestic stock market, 'KODEX Securities,' an ETF that invests in leading Korean securities stocks, is experiencing growth. Analysts attribute the influx of investment funds to expectations that securities firms' earnings will improve as a result of the new government's stock market revitalization policies.

On July 1, Samsung Asset Management announced that the net assets of the KODEX Securities ETF have surpassed KRW 300 billion.

KODEX Securities is an ETF that invests in the Korean securities industry and was listed in 2008. Since May of this year, its returns have risen sharply, fueling rapid growth.

KODEX Securities posted returns of 27.6% over one month, 79.9% over three months, and 93.9% over six months. This performance is attributed to a surge in the domestic stock market, driven by heightened expectations for policy support for the capital markets following the inauguration of the new government. As capital inflows into the KOSPI market increased, expectations for improved earnings at securities firms?including higher brokerage commission income?also rose, leading to a strong performance for securities stocks.

Buoyed by these high returns, net assets grew by more than KRW 200 billion, rising from KRW 100.5 billion in May to KRW 320.2 billion in June. Investment from individual investors is also on the rise. Since the beginning of the year, net purchases by individual investors in KODEX Securities have reached KRW 111 billion. Over the past week alone, net purchases by individual investors totaled KRW 33.5 billion.

The ETF tracks the KRX Securities Index, which is composed of companies representing the Korean securities industry and weighted by market capitalization. It is also a leading dividend-related ETF, with a high proportion of financial sector stocks, placing it among ETFs with high dividend payouts. Its annual distribution rate reaches 4.4%.

Lee Daehwan, a manager at Samsung Asset Management, stated, "The surge in trading volume and improved liquidity conditions resulting from the bullish domestic stock market have driven the strong performance of securities stocks, and KODEX Securities has recently posted steep returns." He added, "Since KODEX Securities has a high proportion of financial stocks, it offers the advantage of high dividends, which is likely to sustain investor interest."