This year, the exchange-traded fund (ETF) market grew sharply, with net worth nearing 300 trillion won. With both domestic and overseas stock markets booming and investor interest expanding, the pace of inflows also accelerated, according to assessments.
In addition, as the KOSPI index surged, returns of products tracking domestic indexes stood out.
According to the Korea Exchange (KRX)'s released "2025 ETF·ETN market settlement of account" data on Dec. 30, as of the 29th of this month the ETF market's total net worth was tallied at 297.2 trillion won. That was up 71.2% (123.6 trillion won) from a year earlier.
ETF net worth rose from 52 trillion won in 2020 to 74 trillion won in 2021, 78.5 trillion won in 2022, 121.1 trillion won in 2023, and 173.6 trillion won last year. With domestic and overseas stock markets strengthening this year, the increase widened further.
The top three issues by total net worth accounted for 11.1% of the entire ETF market. TIGER U.S. S&P 500 ETF was the largest at 12.6 trillion won, followed by KODEX 200 (11.7 trillion won) and KODEX CD Rate Active (Synthetic) (8.7 trillion won).
Buoyed by the strong KOSPI market, the total net worth of KODEX 200, which uses the KOSPI 200 as its underlying index, rose 107.3% (6.2 trillion won) from the previous year.
The number of listed ETF issues was tallied at 1,058. While 173 issues were newly listed this year, 50 issues were delisted.
Net inflows into the ETF market this year were 77.5 trillion won, up 72.8% (32.7 trillion won) from the previous year. Inflows were pronounced in domestic short-term rate products, commodity ETFs such as gold, and U.S. market benchmark index ETFs.
Trading value also rose sharply. The ETF market's average daily trading value this year was 5.5 trillion won, up 57.5% from last year's 3.5 trillion won. That equals 44.3% of the KOSPI market's average daily trading value.
By investor type, individuals accounted for the largest share of trading value at 30.4%, followed by foreigners at 22.2% and institutional investors (excluding LPs) at 18%.
The ETF market's average return this year was 34.2%. Domestic equity ETFs posted returns of 64.8%, far outpacing overseas equity (17.2%), and commodity ETFs also posted high returns.
By product type, trading in domestic equity ETFs was the most active. They accounted for 64% of the entire ETF market's 5.5 trillion won in average daily trading value. In particular, average daily trading value for domestic market benchmark index ETFs such as the KOSPI 200 increased by 670 billion won (41%) from the previous year.
The Korea Exchange (KRX) said, "With the diversification of investment themes and the inflow of retirement pension funds, the ETF market's total net worth is on the verge of 300 trillion won," adding, "ETFs have established themselves as a core asset class in the domestic stock market."
Meanwhile, the total indicative value of the exchange-traded note (ETN) market was 19 trillion won, up 13.1% from the end of the previous year (16.8 trillion won). The number of listed issues was 385, down 27 from the previous year (412).
This is attributed to an increase in maturing products centered on commodity issues and to issuers streamlining their product lineups and voluntarily delisting.
The ETN market's average return this year was tallied at 22.68%. Gainers numbered 174, outnumbering decliners (131). Returns for domestic equity ETNs were 61.58%, far above overseas equity (23.44%).