DS Asset Management is set to enter the ETF (Exchange-Traded Fund) market after 18 years since its establishment, launching its first product focused on KOSDAQ active ETFs. The firm aims to achieve alpha, or excess returns, by selecting undervalued companies in the KOSDAQ market, leveraging its experience in early-stage investments in unlisted firms.
During a press conference held at the Korea Exchange in Yeouido on July 10, CEO Kim Sung-hoon expressed his commitment, stating, "We will mobilize all our in-house capabilities to ensure that DS Asset Management's active ETF can establish itself in the market."
DS Asset Management plans to identify key leading stocks for concentrated investment and adjust its portfolio flexibly in response to industry changes. Approximately 20 fund managers will conduct research while managing and analyzing companies.
The company intends to overcome the limitations of existing passive ETFs through its active ETF strategy. Kim explained, "If assets are allocated based on market capitalization regardless of a company's fundamentals, changes in corporate value may not be adequately reflected in the portfolio."
To achieve this, the firm will focus on discovering stocks not included in the representative KOSDAQ index. According to the anticipated portfolio, companies with a market capitalization of less than 1 trillion won are expected to make up over 60% of the holdings. Jeong Seong-in, head of the ETF team at DS Asset Management, noted, "The KOSDAQ 150 index can only cover about 60% of the total market capitalization, and we aim to find alpha within the remaining 40% that the representative index does not capture."
DS Asset Management highlighted its experience in investing in unlisted companies as a key strength. The firm analyzes the potential for listing and growth of companies at the unlisted stage and continues to invest post-listing, reflecting changes in the industry and corporate value. The company cited successful investments in biotech firms that achieved listing and technology exports.
To manage the correlation of its active ETF, DS Asset Management has established an internal management system. The active ETF will track a benchmark index by 70% while allowing for autonomous stock selection within a 30% range. The firm plans to monitor the correlation with the benchmark index daily and manage the high volatility and liquidity of the KOSDAQ market.
The 'DS KOSDAQ Active ETF' is scheduled to be listed on the securities market on July 14, with an expected size of approximately 21 billion won and a total fee of 1.0% per year.
As of the end of June 2026, DS Asset Management manages approximately 5.5 trillion won in net assets, with private equity and public fund sizes at about 2.7 trillion won and 470 billion won, respectively. The launch of this ETF marks an expansion of the firm's business into the ETF market.
* This article has been translated by AI.
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