"Investing in OOO?" Unique ETFs Flood the Market

Global Copyright, Optical Communication, Silver Spot, and Doosan Group Stocks:

First-Ever ETFs Debut in Korea

Diverse Investor Demand Reflected Amid Intensifying Market Competition

More Differentiated ETFs Expected to Follow

As the exchange-traded fund (ETF) market experiences rapid growth, a diverse array of new ETFs are being launched. Recently, an ETF investing in global copyright companies and Korea’s first optical communication-focused ETF have been listed. With the market expanding, competition among asset management firms is intensifying, and as investor demand diversifies, more differentiated ETFs are expected to be introduced in the future.

According to the financial investment industry on April 5, a large number of previously unavailable ETFs were listed at the end of last month, attracting significant market attention.

The 'PLUS Global Copyright Core Companies Active' ETF from Hanwha Asset Management is an overseas equity active ETF that invests in 25 global core copyright companies with three revenue engines: subscription platforms, intellectual property (IP) originators, and artificial intelligence (AI) data licensing. Key holdings include Netflix, Walt Disney, Spotify, Sony Group, Comcast, Take-Two, Reddit, Tencent, Amazon, The New York Times, and others. Hanwha Asset Management continuously monitors events that directly affect stock prices—such as corporate acquisitions, AI licensing contract signings, copyright litigation rulings, and regulatory enactments—and adjusts portfolio weightings accordingly to pursue excess returns.

SAMSUNG Asset Management has introduced the 'KODEX US AI Optical Communication Network' ETF, which invests in leading companies in the optical communication and network sectors. ETFs focused on AI optical communication and networks are a new type of product not yet listed either in Korea or abroad. This ETF selects specialist companies that dramatically increase data transmission speeds by converting electrical signals into light, with a particular focus on companies key to solving network bottlenecks, a major physical limitation of AI operations. It invests in leading companies across the global optical conversion field, including Lumentum and Coherent (the two dominant players), Marvell (a leader in optical chip design), Ciena (a specialist in data center interconnect equipment), Corning (a core player in fiber optic infrastructure), and Tower Semiconductor (responsible for optical chip production).

Woori Asset Management has launched the 'WON Doosan Group Focus' ETF. This is the first time an ETF specialized in the Doosan Group theme has been listed, and it invests in the growth potential of Doosan Group, which has successfully restructured its business from traditional heavy industry to next-generation nuclear power, advanced industrial robots, and system semiconductors. The ETF allocates 90% of its portfolio to Doosan Group affiliates and the remaining 10% to Doosan’s key partners in pursuit of alpha returns.

Hana Asset Management has introduced the 1Q Silver Active ETF, Korea’s first ETF that tracks the spot price of silver. Previously, the only domestic ETF investing exclusively in silver was a silver futures ETF. The 1Q Silver Active ETF uses the 'Bloomberg Blended Silver Spot USD Index' as its benchmark and includes US-listed silver spot ETFs such as iShares Silver Trust (SLV) and abrdn Physical Silver Shares ETF (SIVR). Notably, it is also eligible for investment through retirement pension accounts. While existing futures-based ETFs had restrictions in retirement pension accounts, this ETF employs a fund-of-funds structure that includes offshore silver spot ETFs, thereby overcoming such limitations.

Previously, at the end of last year, ETFs focused on drones—such as KODEX US Drone UAM TOP10, and KB Asset Management’s RISE Donghak Ant ETF, which spotlights retail investors—were listed and garnered attention. KODEX US Drone UAM TOP10 is Korea’s first product focused on the US drone and UAM (Urban Air Mobility) sectors, investing in 10 leading US companies in these industries. The RISE Donghak Ant ETF is structured to organically reflect the rising influence of individual investors in the stock market, making it the first Korean ETF to feature 'Donghak Ant' in its product name. This ETF constructs its portfolio by combining the top 20% of stocks by net individual buying over the past month with leading momentum stocks over the most recent 12 months (excluding the past month).

In the past, unique ETFs such as those related to obesity and luxury goods have also attracted attention. In the US, there are even ETFs investing in cryptocurrencies, the pet industry, or meme stocks.

As the ETF market continues its rapid expansion and competition among asset managers intensifies, the launch of more differentiated products is expected to continue. A source in the financial investment industry commented, "The flood of new products we haven’t seen before is the result of investor demand, market competition, and changes in investment trends converging. Because ETFs are particularly sensitive to market trend changes, differentiated ETF launches are expected to continue going forward."

This content was produced with the assistance of AI translation services.