Samsung Asset Management: KODEX Securities ETF Tops All ETFs in 1-Year Return

Samsung Asset Management announced on the 23rd that the 1-year return of the KODEX Securities ETF, a leading domestic securities-sector exchange-traded fund (ETF), reached 292.8%, ranking first among all non-leveraged ETFs.

Since the beginning of the year, it has also delivered a return of 99.4%, overwhelmingly outperforming previously leading sectors such as semiconductors.

The strong performance of the KODEX Securities ETF is mainly attributed to a surge in trading following the KOSPI’s breakout above 5,000. As investors’ stock trading has increased sharply, brokerage commission income at securities firms is expected to hit an all-time high.

In addition, securities companies’ active shareholder-return efforts in line with the government’s corporate value-up policy are further boosting investor sentiment. Market observers note that a series of announcements by major securities firms on share buybacks and cancellations, as well as dividend increases, has highlighted their undervaluation, acting as a powerful catalyst for the index’s rise.

Since its listing in 2008, the KODEX Securities ETF has established itself as a flagship product representing the domestic securities sector. It holds a well-balanced portfolio of major securities stocks that lead the Korean stock market, including Mirae Asset Securities, Korea Financial Group, Kiwoom Securities, and Samsung Securities.

With the securities sector as a whole enjoying a boom recently, the number of investors choosing to invest in the sector’s overall growth rather than selecting highly volatile individual stocks has surged. In fact, since the beginning of the year, cumulative net purchases of KODEX Securities by retail investors have reached 135.8 billion won, and on the 19th alone, retail net purchases amounted to 65.2 billion won, making it the second most bought ETF by individual investors on that day.

Buoyed by its record returns and strong inflows, KODEX Securities’ net assets have reached 946.8 billion won, putting it on the verge of surpassing 1 trillion won. This is an unusual scale for a securities-sector ETF and indicates that domestic investors are increasingly viewing securities stocks as an essential asset in their portfolios.

Lee Daehwan, portfolio manager at Samsung Asset Management, said, “Driven by expectations for record earnings in the securities sector and shareholder-return policies, the sector’s returns are overwhelming those of other industries,” adding, “In the current environment, where broad-based benefits are expected across the securities sector, more investors are choosing efficient exposure through the KODEX Securities ETF instead of investing in individual stocks.”