Active-Management ETFs Account for 50% of New Launches in South Korea as Volatility Spurs Interest

According to E Daily, over the past month ending July 23, 9 of 18 newly listed exchange-traded funds on South Korea's exchanges were active-management products, accounting for 50% of new launches. Samsung Asset Management's KODEX 200 Covered Call Active ETF, launched on July 14, drew 200 billion Korean won in net individual purchases within a week.

South Korea's active-management ETF market expanded significantly, with total net assets reaching 103.98 trillion Korean won as of July 23, up 46.3% year-over-year. Active-management products now comprise 27.5% of all 1,150 listed ETFs, with 316 products. However, Kosdaq active-management ETFs that debuted in March have posted negative returns, with some down over 35% in three months, underperforming passive index tracking amid higher management fees.