Thanks to the KOSPI index approaching 3200 points, which set a new record for two consecutive days, the domestic stock-type exchange-traded fund (ETF) market has regained its vitality. Since the new government took office, domestic stock-type ETFs have outperformed overseas stock-type ETFs in terms of revenue and net worth growth.
According to financial information firm FnGuide on the 10th, the recent one-month revenue of domestic stock-type ETFs listed on the domestic market is about three times higher than that of overseas stock-type ETFs. From the 4th, shortly after the presidential election, to the 8th of this month, the average revenue of domestic stock-type ETFs was 12.83%. During the same period, the revenue of overseas stock-type ETFs was only 4.78%.
The atmosphere was different before the presidential election. Looking at the average revenue for the month before the election (from May 2 to June 2), domestic stock-type ETFs had a revenue of 5.11%, while overseas stock-type ETFs had a revenue of 8.21%, indicating that overseas investment products were better.
This appears to be a result of the policy expectations for the Lee Jae-myung government, which promised to eradicate unfair trading and amend commercial law, stimulating investment sentiment in the domestic stock market. Currently, the KOSPI index continues its upward trend, breaking through the 3100-point mark. The KOSPI index reached a new high of 3183.23, setting another record on the day following its highest level in three years and ten months on the 9th.
As the Korean stock market continues its high-flying streak, the capital searching for investment opportunities is naturally gravitating towards domestic stock-type ETFs. From the 4th of last month to the 8th of this month, the net worth of domestic stock-type ETFs increased by a total of 7.433 trillion won. During the same period, the net worth of overseas stock-type ETFs increased by 2.3317 trillion won.
In the month leading up to the presidential election (from May 2 to June 2), 3.0155 trillion won flowed into overseas stock-type ETFs, while 1.229 trillion won was invested in domestic stock-type ETFs. In just one month after the new government took office, more than four times the funds poured into domestic stock-type ETFs.
As money flows in, asset management companies are also ramping up efforts to launch domestic investment ETFs. Samsung Asset Management will list the 'KODEX K-defense TOP10' ETF on the 15th. Shinhan Asset Management, which previously launched the SOL Shipbuilding TOP3 Plus ETF with success, will showcase the leveraged version of this product on the same day.
An official from an asset management company noted, "Recently, the amendment to the commercial law passed the National Assembly, and the financial authorities are expected to make institutional improvements in a direction favorable to the domestic stock market," adding, "We are considering the development of ETFs related to policy beneficiaries in various ways."