The net worth of stock exchange-traded funds (ETFs) that invest in domestically listed corporations has surpassed 200 trillion won. As funds flow into domestic stock ETFs on the back of a strong KOSPI and net worth also increases in a virtuous cycle, the ratio of domestic stock ETFs to KOSPI market capitalization hit a record high of 3.5%.
On the 10th, according to financial data firm FnGuide, the net worth of domestic stock ETFs that invest in corporations listed on the KOSPI and KOSDAQ markets reached 212 trillion won, surpassing 200 trillion won. Considering that the net worth of domestic stock ETFs was 40 trillion won at the end of 2024, it has quintupled in about a year and a half.
ETFs are index funds that track an index and can be traded like individual stocks. They are categorized as domestic stock, overseas stock, domestic bond, and domestic mixed, with a total of 1,099 issues listed in Korea. Among them, stock ETFs that invest in domestically listed corporations number 413, about 38% of the total.
The net worth of domestic stock ETFs was only 40 trillion won at the end of 2024, but after jumping to 93 trillion won last year, it more than doubled in just over four months this year. The ratio to KOSPI market cap also rose to about 3.5%, up 0.81 percentage points from 2.68% at the end of last year.
As the KOSPI has neared the 7,500 level and set record highs day after day, it is seen that ETF funds that had flocked to overseas stock products have shifted to domestic stock products. In particular, as the KOSPI continued its uptrend, a virtuous cycle formed in which the net worth of domestic stock ETFs also increased.
Buoyed by the increase in the net worth of domestic stock ETFs, the total net worth of domestic ETFs has exceeded 450 trillion won. Domestic stock ETFs accounted for about half (46.6%). This contrasts with late 2024, when the share of domestic stock ETFs fell to around 24% due to fund diversification into overseas stock ETFs.
A source in the securities industry said, "Stock ETFs are attracting new entrants to the stock market because they can enjoy the benefits of index gains while easing the burden of investing in specific issues," adding, "The number of investors under 20 investing in ETFs alone rose 37% from the end of last year."