Timefolio Asset Management's "TIME Active ETF" AUM Surpasses 5 Trillion Won

Timefolio Asset Management announced on the 26th that the total net assets (AUM) of its active exchange-traded funds (ETFs) have surpassed 5 trillion won.

According to the Korea Exchange, the total net assets of Timefolio Asset Management's ETFs amounted to 5.0718 trillion won as of the day. This comes about 50 days after it surpassed 4 trillion won on January 6. With this, Timefolio has become the first asset manager specializing in active ETFs to break through the 5 trillion won mark.

The biggest driving force behind surpassing 5 trillion won has been its overwhelming returns. Even amid a strong market in which the KOSPI recently broke through the 6,000 level, the firm has consistently delivered excess returns that outperformed the index, earning the trust of clients. Its strategy of focusing on active ETFs that emphasize excess returns, rather than churning out new ETFs one after another in a rapidly growing ETF market, also had an impact.

In fact, its flagship domestic product, the "TIME KOSPI Active ETF," has recorded a 120% return over the past year, while the "TIME Global Top Pick Active ETF," which flexibly allocates assets in line with trends in the global equity markets, has also posted double-digit returns since the beginning of the year. This has placed it among the top performers within asset-allocation-type ETFs suitable for pension investment, driving strong inflows.

Timefolio's unique ability to respond swiftly to market changes has also shone. The company has effectively managed its ETFs by quickly adding leading stocks of the era: semiconductor sector beneficiaries such as Samsung Electronics and SK Hynix amid intensifying competition in high bandwidth memory (HBM) 4; the robotics and artificial intelligence (AI) sector targeting the era of physical AI; and the aerospace, defense, and financial sectors reflecting expectations for a SpaceX listing.

Timefolio first listed an ETF in May 2021 and is currently managing 17 ETFs in total, including 7 domestic and 10 overseas products. Unlike passive ETFs, which simply replicate their underlying indices, Timefolio's TIME Active ETFs adhere to an active management approach in which portfolio managers directly select leading stocks and adjust their weightings. This approach reduces risk while maximizing returns in volatile markets.

Kim Namho, Head of ETF Management at Timefolio Asset Management, said, "Achieving 5 trillion won in net assets solely with active ETFs in the domestic market is not just about quantitative growth; it is highly meaningful in that it has shifted the ETF market paradigm, which used to be centered on passive products, toward active strategies." He added, "Even in the era of KOSPI 6,000, TIME KOSPI Active will continue to be a 'KOSPI that beats the KOSPI,' generating excess returns through active management."