Last year, Mirae Asset Global Investments launched a large number of U.S. exchange-traded funds (ETFs), boosting its market share. This year, it is focusing on ETFs that invest in Chinese technology stocks. The company is set to launch two additional Chinese ETFs this month, indicating a concentrated effort on developing Chinese products.
Park Hyun-joo, chairman of Mirae Asset Group, recently emphasized the growth potential of China. As the gap in market share with Samsung Asset Management widened to more than 5%, it seems that the company is looking to diversify its investment areas to enhance its competitiveness.
According to the financial investment industry on the 5th, Mirae Asset Global Investments plans to launch 'TIGER China AI Software' and 'TIGER China Global Leaders TOP3+' ETFs this month. They are currently in the final review stage at the Korea Exchange along with the 'TIGER Total World Stock Active' ETF.
This year, Mirae Asset Global Investments has launched eight new ETFs, and with the products set to launch this month, about 40% (four products) will invest in Chinese technology stocks.
'TIGER China AI Software' ETF is expected to invest in big tech companies leading China's artificial intelligence (AI) industry, such as Alibaba, Tencent, and Baidu, as well as AI software corporations like Kingsoft and SenseTime. The portfolio of 'TIGER China Global Leaders TOP3+' ETF will include a total of 10 to 15 Chinese corporations, focusing on three globally competitive companies: Alibaba, BYD, and Xiaomi.
While Mirae Asset Global Investments had not released products related to China since May 2023 with 'TIGER China Electric Vehicle Leverage,' they have focused on launching four products since last May. Last year, half of the 24 newly launched ETFs were U.S. investment products, but this year, only three out of the eleven are.
Some analysts have noted that as the U.S. stock market has been shaky since the beginning of the year, Mirae Asset Global Investments has shifted its investment strategy from being U.S.-centric to diversifying its investment regions. The 'TIGER Total World Stock Active' ETF, set to launch this month, is also a product that can diversify investments across major global stock markets in China, Europe, and India.
Investor response to the two Chinese ETFs launched by Mirae Asset Global Investments last month has been positive. Individual investors have net purchased 42.4 billion won worth of the newly listed 'TIGER China Tech TOP10' as of the 2nd of this month. Over the past month (from May 3 to June 2), among the 209 ETFs of Mirae Asset Global Investments, this had the fifth-largest net purchase volume. 'TIGER China Humanoid Robot' (4.4 billion won) ranked 22nd in net purchases during the same period, placing it among the top ranks. Overall among all ETFs, they ranked 9th and 75th, respectively.
Given the focus on launching ETFs that primarily invest in Chinese technology stocks, there are expectations that successful market penetration could drive a rebound in market share. By the end of last year, Mirae Asset Global Investments held a market share of 36.1%, with a gap of about 2% compared to Samsung Asset Management at 38.2%. However, as of the end of last month, the market share of Mirae Asset Global Investments is down to 33.6%, while Samsung Asset Management is at 38.6%, widening the gap to over 5%.
A source from an asset management firm noted, "While the United States accounts for about 60% of the global stock index 'MSCI ACWI', in terms of actual gross domestic product (GDP), it is about 20%. Mirae Asset Global Investments perceives the U.S. to be relatively overvalued and views China, which it considers undervalued, as a core part of its portfolio, taking proactive steps to expand its product offerings."