KB Asset Management (KB Asset Management) and Korea Investment Management (KIM) are locked in fierce competition for the No. 3 spot in Korea's exchange-traded fund (ETF) market. The ranking flipped three times in the past week. In a rotational market, the two asset managers are trading fortunes depending on differences in their flagship ETFs.
According to the Korea Securities Depository (KSD) on the 25th, KIM ranked third as of the previous day based on ETF net worth at 19 trillion 422 billion won. KB Asset Management was fourth at 18 trillion 951.9 billion won. The two managers' market shares were 7.88% and 7.85%, respectively, a gap of 0.03 percentage points.
With such a slim gap, the rankings keep seesawing. From the 15th to the 16th, KB Asset Management led with a 7.95% market share, ahead of KIM's 7.91%. The No. 3 spot then changed from KIM on the 17th → KB Asset Management on the 18th → KIM on the 19th.
Differences in flagship ETFs are cited as the backdrop to the two managers' fierce rivalry. A person in the asset management industry said, "When the U.S. stock market rises, KIM's share goes up, and when the domestic market is strong or generally sluggish, KB Asset Management's share tends to increase."
As of the previous day by net worth, KIM's largest ETF is "ACE U.S. S&P 500" at 2.421 trillion won. It is followed by ▲ ACE U.S. 30-year Treasury Active (H) 2.3187 trillion won ▲ ACE U.S. Nasdaq 100 1.9348 trillion won ▲ ACE KRX Gold Spot 1.8895 trillion won ▲ ACE Tesla Value Chain Active 1.0995 trillion won. A high proportion of its ETFs are based on U.S. stocks.
For KB Asset Management, the parking-type ETF "RISE Money Market Active" is the largest by net worth at 2.8376 trillion won. It is followed by the Kospi 200-tracking "RISE 200 (1.6893 trillion won)," as well as ▲ RISE Broad Bond (A- and above) Active 1.6155 trillion won ▲ RISE CD Rate Active (synthetic) 1.3104 trillion won ▲ RISE Short-term Special Bank Bond Active 1.273 trillion won. It has a higher weight in domestic stocks and bonds.
Because of the differences in flagship ETFs, the ranking battle between KIM and KB Asset Management is expected to be determined by the direction of the U.S. and domestic stock markets. A person in the financial investment industry said, "After the U.S. Federal Reserve (Fed) cut rates, the U.S. market had a relative edge over the domestic market, but with Chair Jerome Powell pointing to overvaluation recently, the mood could change at any time," adding, "The ranking contest is likely to continue for the time being."