Two KOSDAQ active exchange-traded funds (ETFs) were listed for the first time on the domestic stock market today. Unlike passive ETFs that track an index as is, active ETFs are products in which portfolio managers directly select stocks and set weightings to seek market-beating returns. The funds debuting on the Korea Exchange on the 10th are TIME KOSDAQ Active by Timefolio Asset Management and KoAct KOSDAQ Active by Samsung Active Asset Management.
Investor interest was hot from the first day of listing. On the 9th, the previous day, there was even a mishap in which a portfolio-guessing report published by Kiwoom Securities was mistaken for the actual portfolio. Kiwoom Securities said the report merely referenced existing products and did not definitively present the actual holdings or weightings of any specific ETF.
The reason investors are so focused on the holdings is that performance diverges sharply depending on the portfolio managers' stock-picking ability. The pride match between Timefolio, known as a powerhouse in active management, and the latecomer but steadily performing Samsung Active is expected to kick off in earnest on the KOSDAQ market.
Based on the day's performance, Samsung Active Asset Management appeared to be slightly ahead. The KoAct KOSDAQ Active ETF ended trading at 13,455 won, up 11.94% (1,435 won) from the listing base price. Turnover came to 575.2 billion won. The TIME KOSDAQ Active ETF closed at 12,240 won, up 4.13% (485 won) from the listing base price. Turnover was 476.5 billion won.
Individual investors also appeared to have bought slightly more of the KoAct KOSDAQ Active ETF. According to the Korea Exchange (KRX) market data system, individual investors purchased 276.0 billion won worth of the KoAct KOSDAQ Active ETF and 264.0 billion won of the TIME KOSDAQ Active ETF.
Comparing the two portfolios, Timefolio Asset Management opted for stability, while Samsung Active Asset Management chose a relatively bolder investment strategy, highlighting a contrast.
First, Timefolio Asset Management added a large number of KOSDAQ large-cap stocks to its KOSDAQ active ETF. The heaviest weights were on secondary battery-related stocks EcoPro (9.76%) and EcoPro BM (6.89%). The two are the No. 1 and No. 3 KOSDAQ companies by market capitalization, respectively. It also included Sam Chun Dang Pharm, ABL Bio, Rainbow Robotics, LEENO Industrial, and LigaChem Biosciences, which are likewise within the top 10 by market capitalization.
A Timefolio Asset Management official said, "Our initial goal after listing is to manage the fund stably," adding, "The portfolio could change significantly going forward."
Samsung Active Asset Management, by contrast, chose a relatively bold management strategy. Samsung Active gave the highest 7% weighting in its KOSDAQ active ETF to Qurient, a drug development company. Qurient currently has a market capitalization of 1.5116 trillion won. Sungho Electronics, the second-heaviest holding, has a market capitalization of 2.7305 trillion won. It also included semiconductor company FADU, biotech company Voronoi, and robot-related stocks Rainbow Robotics and ROBOTIS in the portfolio.
A Samsung Active Asset Management official said, "Our goal is to find hidden gems in the KOSDAQ market," noting, "We judged that if the holdings were too similar to the KOSDAQ 150 index and its components, there would be no differentiation." For KoAct KOSDAQ Active, roughly half of its holdings reportedly overlap with the KOSDAQ 150 components.
However, as it included stocks with relatively smaller market caps, there were instances where share prices spiked sharply. Qurient and Sungho Electronics each closed up more than 25% and 28%, respectively, on the day.