Number of ETFs with Net Assets Worth of More Than 1 Trillion Won Nears 10...

A total of 96 ETFs had net assets of at least 1 trillion won as of the market close on May 11

The share of ETFs with net assets exceeding 1 trillion won also rose by 2.4 percentage points from 6.3 percent, or 67 out of 1,058 ETFs, at the end of last year.

As South Korea’s stock market continues its sharp rally, with the KOSPI index approaching the 8,000 mark, the number of exchange-traded funds, or ETFs, with net assets exceeding 1 trillion won, equivalent to about 668.58 million, is approaching 100.

According to financial data provider FnGuide on May 13, a total of 96 ETFs had net assets of at least 1 trillion won as of the market close on May 11. The figure accounted for 8.7 percent of all ETF products, which totaled 1,099, with 29 new funds joining the so-called “1 trillion won club” compared with the end of last year, when there were 67.

The share of ETFs with net assets exceeding 1 trillion won also rose by 2.4 percentage points from 6.3 percent, or 67 out of 1,058 ETFs, at the end of last year.

Among them, 43 domestic equity ETFs surpassed the 1 trillion won mark, accounting for 44.7 percent of the 96 products, followed by 22 overseas equity ETFs.

At the end of last year, the number of domestic equity ETFs with more than 1 trillion won in net assets stood at 23, compared with 19 overseas equity ETFs. This year, however, while the number of overseas equity ETFs increased by only three, domestic equity ETFs surged by 20.

The contrast comes as the U.S. S&P 500 and Nasdaq indexes have risen 8.2 percent and 13 percent, respectively, so far this year, while the KOSPI had gained 85 percent as of May 11.

In addition to domestic and overseas equity ETFs, 15 domestic bond ETFs also had net assets exceeding 1 trillion won, while five mixed domestic funds combining equities and bonds surpassed the threshold as well.

The overall size of the ETF market has also grown significantly. The number of ETFs with net assets of 500 billion won or more increased from 125 at the end of last year to 183. In particular, the number of ultra-large ETFs with more than 5 trillion won in net assets increased sharply to 17 from six, while those exceeding 10 trillion won rose to five from two.

The rankings of individual products have also shifted. At the end of last year, the TIGER U.S. S&P 500 ETF, which tracks the U.S. S&P 500 index, ranked first in net assets with about 12.7 trillion won. This year, however, the KODEX 200 ETF, which tracks the KOSPI 200 index, more than doubled in size to approximately 25.87 trillion won, overtaking it to claim the top spot.

Total ETF net assets rose by 171 trillion won to 468 trillion won from 297 trillion won at the end of last year.

Yoon Young-sil