ETF Net Assets Surpass 500 Trillion Won, Driven by "Samsung Electronics-SK Hynix Leverage"

Net Assets Surpass 500 Trillion Won as of the 27th
100 Trillion Won Added in Just 42 Days After Topping 400 Trillion Won
"Samsung Electronics & SK hynix 2x" ETFs Reach 5 Trillion Won in Net Assets
"600 Trillion Won Target Expected Within Th

The total net asset value of domestic exchange-traded funds (ETFs) has surpassed 500 trillion won for the first time in history. This milestone was reached as the stock market surged and single-stock leveraged ETFs based on Samsung Electronics and SK hynix made a splash on their first day of listing.

According to the Korea Exchange on May 28, the total net asset value of the 1,131 ETFs listed domestically stood at 501.823 trillion won as of the previous day. This figure increased by 100 trillion won in just 42 days since surpassing 400 trillion won on April 15. Compared to the end of last year, when the figure was 297 trillion won, this represents an increase of more than 200 trillion won.

On the 27th, the price of each stock displayed in the dealing room of Hana Bank’s main branch in Jung-gu, Seoul, and the screen showing the SK hynix single-stock leverage ETF being traded that day, surged immediately after the launch of the single-stock leverage ETF based on Samsung Electronics and SK hynix as underlying assets. Photo by Yonhap News

The pace of ETF net asset growth is accelerating. After surpassing 100 trillion won in June 2023, the market reached 200 trillion won in June last year, just two years later. Subsequently, it exceeded 300 trillion won in January of this year, about six months later, and then 400 trillion won in April, just three months after that.

Since the beginning of this year, strong stock performance has driven the expansion of ETFs tracking domestic indices or stocks. As of the previous day, the largest ETF in Korea, KODEX 200, had a total net asset value of 28 trillion won. This is about 10 trillion won more than the second-largest, TIGER US S&P500, which has 18 trillion won in assets.

The share of ETF trading volume is also growing. The average daily trading value for ETFs this year reached 19.4196 trillion won, which is 3.5 times higher than last year’s 5.5 trillion won. During the same period, this figure accounted for 59.4% of the average daily trading value of KOSPI (32.6758 trillion won).

The simultaneous listing of 16 single-stock leveraged ETFs the previous day also contributed to the sharp increase in ETF net assets. In just one day, the combined net asset value of these 16 ETFs reached 5.0074 trillion won. KODEX SK hynix Single-Stock Leveraged ETF led with 1.8992 trillion won, followed by KODEX Samsung Electronics Single-Stock Leveraged ETF with 1.2248 trillion won, and TIGER SK hynix Single-Stock Leveraged ETF with 884.9 billion won. According to ETF Check, the most actively net purchased ETFs by individuals the previous day were TIGER SK hynix Single-Stock Leveraged ETF (690.9 billion won) and KODEX SK hynix Single-Stock Leveraged ETF (667.3 billion won), in that order.

Securities industry experts anticipate that, with ETFs at the center of the "money move," the market will continue to expand rapidly. Jin Young Kim, a researcher at Kiwoom Securities, stated, "The domestic ETF market is expected to attempt to reach a total net asset value of 600 trillion won within this year," adding, "Structural changes in investor inflows, long-term capital inflows from channels such as retirement pensions, competitive product offerings among asset managers, and improvements in the regulatory and infrastructure environment will all support steady growth."

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