ETF Race Heats Up Amid Market Volatility... KODEX and TIGER Trade Places

As South Korea’s stock market has experienced extreme volatility, fierce competition for the top spot in the exchange-traded fund (ETF) market is unfolding. With funds awaiting investment flowing into U.S. equity ETFs and cash-parking ETFs, the market landscape is shifting sharply, with the top position changing hands again in just one day.

According to the Korea Exchange, as of the closing price on October 15, the net assets of TIGER US S&P 500, managed by Mirae Asset Global Investments, reached KRW 21.0144 trillion. It overtook KODEX 200, managed by Samsung Asset Management, which had KRW 20.6848 trillion in net assets, to become South Korea’s largest ETF for the first time in eight months.

However, as of the close on October 16, just one day later, KODEX 200’s net assets had risen to KRW 21.0736 trillion, while those of TIGER US S&P 500 had fallen to KRW 20.9464 trillion, putting KODEX 200 back in first place. The sharp swings in South Korea’s stock market have intensified the race for the lead, with the top position changing hands in a single day.

In the first half of this year, KODEX 200 had maintained a commanding lead, buoyed by the sharp rise in the KOSPI. On June 18, for example, the gap between KODEX 200, with KRW 32.7417 trillion in net assets, and TIGER US S&P 500, with KRW 19.4148 trillion, widened to as much as KRW 13.3269 trillion. Since then, South Korea’s stock market has continued to struggle while U.S. stocks have sustained solid gains. The recent sharp drop in the KOSPI has reignited the battle for the top spot between flagship index products from Samsung Asset Management and Mirae Asset Global Investments.

Other U.S. equity products also rose across the board, supported by the relative strength of U.S. stocks. TIGER US Nasdaq 100 climbed from fifth place at the end of June to third as of October 16, with KRW 11.7648 trillion in net assets. KODEX US S&P 500 and KODEX US Nasdaq 100 also moved up the rankings over the same period, from sixth and eighth place to fifth and sixth, respectively.

Cash-parking ETFs, which attract short-term funds with nowhere else to go, have also made notable gains. These ETFs invest in short-term financial products to earn interest.

KODEX Money Market Active, with KRW 11.4316 trillion in net assets, was outside the top 10 at the end of June but surged to fourth place. KODEX CD Rate Active (Synthetic), which tracks the interest rate on 91-day certificates of deposit, also climbed to ninth place, with KRW 7.0991 trillion in net assets.

By contrast, products focused on specific domestic sectors or involving high risk could not avoid outflows. TIGER Semiconductor TOP 10, which ranked third at the end of June with KRW 12.8889 trillion in net assets, fell to eighth place, while KODEX Leverage dropped from ninth to 17th.

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