The domestic exchange-traded fund (ETF) market continues its rapid growth, with the number of funds exceeding 1 trillion won in total assets under management (AUM) surpassing 100 for the first time. This surge is attributed to a booming stock market and significant inflows of capital from both individual and institutional investors.
According to fund evaluation firm FnGuide, as of May 28, there are 102 domestic ETFs with AUM exceeding 1 trillion won, up from 66 at the end of last year, marking an increase of 36 funds in just six months.
The rise of large-scale ETFs is also notable. The number of ETFs with AUM exceeding 5 trillion won has increased from six at the end of last year to 16 currently. This growth is driven by index ETFs representing the domestic stock market, as well as those linked to major U.S. indices and sectors like semiconductors and dividends.
The overall size of the ETF market is expanding rapidly, with total AUM nearing 500 trillion won, reaching record levels. Analysts attribute this growth to the increasing preference for ETFs among domestic investors, coupled with a rising stock market.
The top-performing ETFs have also shown remarkable growth. The KODEX 200, the leading ETF, has seen its AUM increase by over 16 trillion won compared to the end of last year, while the second-ranked TIGER U.S. S&P 500 has grown by more than 5 trillion won. Notably, the third-ranked TIGER Semiconductor TOP10 has seen its AUM surge from 2.83 trillion won to 14.54 trillion won, more than a fivefold increase, thanks to strong semiconductor stocks.
The simultaneous bullish trends in domestic and international stock markets this year have been identified as key factors in the expansion of the ETF market. The KOSPI index has recorded significant gains since the beginning of the year, while the U.S. stock market has also maintained a strong upward trend, leading to increased capital inflows into both domestic and foreign equity ETFs.
Recently, high-risk, high-reward products based on single stocks have also gained popularity, further broadening the ETF market. The newly listed Samsung Electronics and SK Hynix single-stock leveraged ETFs from Samsung Asset Management quickly surpassed 1 trillion won in AUM shortly after their launch, joining the '1 trillion club.'
Industry experts expect the growth of the ETF market to continue in the near future. The proportion of ETF investments through retirement and personal pension accounts is steadily increasing, and more investors are utilizing ETFs as long-term investment vehicles.
A financial industry official stated, "The influx of capital due to the rising stock market and the expansion of pension funds are rapidly increasing the size of the ETF market. As various products continue to be launched, the number of large-scale ETFs will keep growing."
* This article has been translated by AI.
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