South Korea’s stock market has climbed at an unusual pace, reshaping the exchange-traded fund landscape. Asset managers with heavier exposure to domestic equity ETFs have seen net assets rise quickly, while firms that emphasized U.S. big tech and other overseas-stock products have lagged.
As of May 7, KB Asset Management’s ETF net assets totaled 32.4668 trillion won, according to the Korea Financial Investment Association. Korea Investment Management posted 32.4552 trillion won. Both had a 7.18% market share, but KB edged ahead on assets to retake third place.
The two firms have traded the No. 3 spot for years. At the end of 2024, Korea Investment Management surpassed 13 trillion won in ETF net assets and closed in on KB, and the rankings continued to flip. By the end of last year, the gap widened: KB stood at 21.0866 trillion won with a 7.10% share, while Korea Investment Management rose to 25.3505 trillion won and an 8.53% share.
The picture shifted this year as South Korean stocks surged. The Kospi has risen 191.49% over the past year, far outpacing the S&P 500’s 30.79% and the Nasdaq’s 45.67%. Since the start of the year, the Kospi is up 74.21%, compared with 7.39% for the S&P 500 and 11.20% for the Nasdaq.
With money flowing into domestic stocks, related ETF assets expanded rapidly, helped by gains in the value of existing holdings. Analysts say managers with a larger share of domestic equity ETFs benefited most.
Korea Investment Management has aggressively expanded a U.S. big tech-focused lineup. Among its flagship ETFs with more than 1 trillion won in net assets are ACE U.S. S&P 500 (3.6310 trillion won), ACE U.S. 30-Year Treasury Active (H) (1.8130 trillion won), ACE Global Semiconductor TOP4 Plus (1.3710 trillion won) and ACE Tesla Value Chain Active (1.2180 trillion won), all with significant exposure to U.S. stocks and technology shares.
KB Asset Management, by contrast, has built a more balanced mix of domestic index and bond ETFs. Its flagship RISE 200 has 4.2780 trillion won in net assets. Other major products include RISE Korea Value Up (1.0010 trillion won), RISE Money Market Active (2.7240 trillion won), RISE Total Bond (A- or higher) Active (2.1070 trillion won) and RISE Samsung Electronics-SK Hynix Bond Mixed 50 (1.6110 trillion won), underscoring its domestic-asset tilt.
The domestic rally is also affecting the battle for the top two spots. At the end of 2024, Samsung Asset Management and Mirae Asset Management held ETF market shares of 38.17% and 36.09%, a gap of 2.08 percentage points. By the end of last year, the gap widened to 5.39 points, and as of May 7 Samsung’s share had climbed to 40.08%, extending the lead over Mirae Asset to 8.64 points. Mirae Asset, which has also pursued an overseas-investment strategy, is seen as facing a relatively tougher environment during the domestic surge.
An official in the financial investment industry said launching ETF products requires time and staffing, meaning an asset manager’s market outlook is reflected in its lineup. That lineup difference, the official said, becomes part of each firm’s brand identity and shapes investor choice.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.