[Click eStock] "FnGuide, the Only Direct Beneficiary Listed Company in the 220 Trillion Won ETF Market Era"

On August 6, independent research firm ValueFinder analyzed that FnGuide is the sole beneficiary in the domestic exchange-traded fund (ETF) market, which has now reached a size of 220 trillion won, and highlighted the significance of the company's foreign ownership ratio surpassing 10% for the first time since its establishment.

FnGuide, founded in 2000 and transferred to the KOSDAQ market in 2020, is an online-based financial information service provider. Its main business divisions include financial information provision, index development and provision, and fund evaluation. Its major clients are financial institutions such as securities firms, asset management companies, and banks, as well as research institutions. Leveraging its accumulated data, FnGuide offers customized index simulation, development, and provision services for financial institutions, and holds the number one market share in the domestic stock market among private index providers, excluding KRX.

Lee Chungheon, a researcher at ValueFinder, explained, "Over the past three years, the domestic ETF market's total net assets have nearly tripled, surpassing 220 trillion won last month," and added, "During the same period, the number of ETF listings traded in the domestic stock market increased by more than 400, exceeding 1,000."

Lee further stated, "FnGuide currently has a product lineup of about 150, and among its flagship FnIndex-tracking ETFs, there are five with total net asset values exceeding 1 trillion won." He continued, "The revenue structure of this business division is based on calculating the assets under management and earning revenue according to the contracted basis points, so the growth in market size and the increase in newly developed indices directly lead to an increase in the company’s sales. Therefore, we assess that FnGuide is the only listed company to benefit directly from the growth of the ETF market."

He added, "In addition to its core business, the company is in the process of restructuring its financial products and affiliates, so it is expected to achieve a significantly higher net profit margin this year compared to the previous year. Furthermore, the fact that foreign ownership has exceeded 10% for the first time since listing, and that the company is preparing for a reduced dividend to enhance shareholder value, are reasons to pay attention to FnGuide from a mid- to long-term perspective."