Next week, the first active exchange-traded funds (ETFs) in Korea that track the KOSDAQ index will be launched.
On the 6th, Korea Exchange (KRX) said two KOSDAQ active ETFs and others will be listed on the stock market on the 10th.
The ETFs that track the KOSDAQ index are two products: KoAct KOSDAQ Active by Samsung Active Asset Management and TIME KOSDAQ Active by Timefolio Asset Management. The trust principal amounts are 50 billion won and 46.5 billion won, respectively, and the price per unit is 10,000 won for both.
These are active products that mainly invest in KOSDAQ-listed issues. With the government's intent to revitalize the KOSDAQ market and related active ETFs rolling out to the market, full-scale stock-by-stock "separating the wheat from the chaff" is expected to become more pronounced.
Total fees are cheaper compared with KoAct KOSDAQ Active at 0.5% and TIME KOSDAQ Active at 0.8%.
In addition, KB Asset Management's RISE China AI Semiconductor TOP4 Plus ETF will also be listed on the same day. This product is a passive ETF that concentrates on semiconductor-related issues among corporations listed in China and Hong Kong. It includes the largest companies by market capitalization across four subindustries: semiconductor foundry, artificial intelligence (AI) semiconductors, optical communication modules, and materials and equipment.
A Korea Exchange official said, "In addition to total fees, other costs such as underlying index licensing fees, trading costs, and audit fees may be incurred," and added, "To help investors understand, we plan to provide the daily paid-in asset composition (PDF) through the exchange and asset manager ETF websites."