As the stock market volatility increases due to the effects of tariffs from the United States, funds are flocking to money market exchange-traded funds (ETFs), considered safe investment destinations. With large sums of money pouring in, asset management companies are also responding. Mirae Asset Global Investments has established a new division to enter the money market ETF market, and Samsung Asset Management has launched dollar-denominated products to increase choices for investors.
According to a check by Koscom on the 13th, among the top ETFs with the largest net inflows in the last month (from April 11 to May 12), multiple money market ETFs have made their names. The 'KODEX Money Market Active' ETF ranked first with 489 billion won, followed by the '1Q Money Market Active' ETF (373 billion won) and the 'RISE Money Market Active' ETF (303 billion won) in second and third place, respectively. The 'TIGER Money Market Active' ETF also saw 170 billion won flow in, ranking seventh.
As of the previous day (12th), the total net worth of the 10 money market ETFs listed in the country was recorded at 11.6 trillion won. Considering that the total was 9.34 trillion won as of March 31, before the reciprocal tariffs initiated by U.S. President Donald Trump, over 2 trillion won has flowed into the money market ETF market in just over a month.
Money market ETFs invest in high-credit short-term financial products like short-term bonds and commercial papers (CP), pursuing both stability and liquidity simultaneously. They offer higher interest rates than bank savings while allowing real-time trading, making them often used as short-term investment vehicles in volatile markets.
Additionally, under current law, the proportion of risky asset investments in retirement pension accounts is limited to 70%, but most money market ETFs are classified as safe assets, allowing for 100% investment in retirement pension accounts, which is also seen as an investment attraction.
Major asset management companies are seen busy responding to the rapidly growing money market ETF market. Mirae Asset Management has separated the bond ETF management part from its existing ETF management division to establish it as an independent department, and recruited Deputy Minister Kim Dong-myung, who was in charge of money market funds (MMFs) at Hanwha Asset Management.
Under the leadership of the Bond ETF Management Department, Mirae Asset Management launched the 'TIGER Money Market Active' ETF on the 22nd of last month, which saw its net worth rise to 220 billion won just nine days after its launch. As of the 12th of this month, its net worth is approximately 300 billion won, quickly narrowing the gap with the net worth of Kiwoom Asset Management's 'KIWOOM Money Market Active' ETF (301 billion won), which was listed in February of last year.
Mirae Asset Management noted that "demand for flexible management of short-term funds is increasing amid prolonged market volatility this year," adding that "the stable yield structure and low cost of 0.04% have acted as attractive investment factors even in an interest rate decline phase."
Asset management companies are also expanding their territories into foreign currency-based money market markets. On this day, Samsung Asset Management newly listed the 'KODEX U.S. Money Market Active' ETF, which simultaneously invests in U.S. short-term safe assets and dollars. This ETF is a dollar-denominated product with an index based on U.S. government bonds, with remaining maturities of less than three months.
The price per share is maintained at around $10, linked to the won-dollar exchange rate. It allows direct investment in the U.S. money market without the need to convert won to dollars. This is the first time among domestic asset management companies that a foreign currency-based money market product has been launched.