This year, individual investors' funds shifted from individual stocks to exchange-traded funds (ETFs). Individual investors made net purchases of 3.06 trillion won worth of ETFs from January to November.
Shinhan Asset Management said on the 31st that it published the report "2026 fund market outlook." The report consists of ▲ review of 2025 fund market trends ▲ 2026 fund market outlook.
In this report, Shinhan Asset Management particularly noted that the expansion of indirect investment by individual investors, the inflow of pension funds, and changes in asset allocation centered on ETFs are sustaining structural growth across the fund market.
Individual investors made net purchases of 3.06 trillion won in ETFs this year, the highest net buying among all investment assets. In contrast, individuals made net sales of 1.16 trillion won in stocks during the same period. Net purchases of bonds totaled 2.95 trillion won. The data used for the tally are as of the 28th of last month.
In particular, Shinhan Asset Management said in the report, "ETFs' net worth increased by 11.3 trillion won this year to 28.6 trillion won, showing explosive growth," adding that it serves as "the most important investment vehicle for individuals investing in risk assets."
Looking at this year's returns by fund market type, it is assessed as a year in which the performance of risk assets such as domestic equity and commodities, as well as overseas equity, stood out.
Buoyed by gains in the domestic stock market, the average return of domestic equity funds exceeded 70%, and on the back of higher gold prices, commodity funds (44.8%) also posted a large increase in performance.
Overseas equity funds (17.2%) also posted double-digit returns, continuing a stable performance trend.
Song Tae-heon, head of the SDGs Strategy Team at Shinhan Asset Management, said, "In 2025, the fund market continued stable growth in public offering funds, centered on bond funds and pension money," adding, "ETFs, centered on overseas equity and domestic equity, continued to see large inflows and established themselves as key investment vehicles for individual investors, driving overall growth in the fund industry's size."
He added, "In 2026, the fund market will see the performance of tech stocks centered on the United States and the structural growth of the AI industry stand out, as well as the increasing importance of ETF asset allocation strategies based on these," noting, "Despite bubble concerns, the AI industry is entering a growth phase accompanied by earnings and cash flow, and diversification through ETFs is likely to serve as a baseline for investment strategies."
Next year, demand for indirect investment using public offering funds and ETFs is more likely to continue than direct investment in risk assets, and pension funds are expected to move toward products whose performance and management structures have been verified.