Samsung Asset Management announced on the 7th that it will reduce the total fees for two types of ETFs, 'KODEX U.S. S&P 500 ETF (Exchange-Traded Fund)' and 'KODEX U.S. Nasdaq 100 ETF', from 0.0099% to 0.0062%. This is the lowest level among ETFs listed in South Korea.
Previously, Samsung Asset Management had also reduced the total fees for KODEX U.S. S&P 500 and KODEX U.S. Nasdaq 100 from an annual 0.05% to 0.0099% last April.
Samsung Asset Management noted that this decision was made because the amendment to the tax law proposed by the Ministry of Strategy and Finance in January made it impossible to maintain the structure of automatic reinvestment of distributions (TR), and it was carried out as a gesture of goodwill toward customers.
KODEX U.S. S&P 500 recorded a revenue rate of 44.31% last year, achieving the highest revenue among 9 similar ETFs. This product showed a net worth growth rate of 416.9% compared to the end of 2023. KODEX U.S. Nasdaq 100 also recorded a revenue rate of 45.94% last year, indicating the highest revenue among 4 similar ETFs. Its net worth also grew by 195.7% compared to the end of 2023.
Park Myeong-je, head of the ETF division at Samsung Asset Management, said, "Once again reducing the total fees for these products to the lowest level is to lower costs and provide more dividends to existing investors who regret the disappearance of the TR-type structure. It is also aimed at providing good investment opportunities for new pension investors who are still not familiar with investing."