Daily BriefsSouth Korea

Daily Brief South Korea: Samsung Kodex Banks ETF and more

In today’s briefing:

  • Dissecting KRX Annual ETF Market Report & Noteworthy Trends for ETF Arbitrages

Dissecting KRX Annual ETF Market Report & Noteworthy Trends for ETF Arbitrages

By Sanghyun Park

  • Korea’s ETF market achieved top-line growth last year as well. AUM increased by 7% YoY, a significant achievement considering that global ETF AUM has shrunk by 8%.
  • Since one-third of local ACTIVE ETFs are equity types (particularly SECTOR), we can conclude that the local equity ETF market has not shrunk but has migrated to ACTIVE.
  • Recently listed sector ETFs are expected to play an accelerating role in expanding the scope of these arb opportunities as they expand beyond electric vehicles/secondary batteries to groups/defense.

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