Mirae Asset Global Investments is entering the KOSDAQ active exchange-traded fund (ETF) market. Mirae Asset Global Investments plans to list a KOSDAQ active ETF on the 2nd.
On the 1st, Mirae Asset Global Investments held a webinar and introduced the TIGER KOSDAQ Active ETF that will be listed on the 2nd. The company said it is launching the product to respond to the expansion of investment in artificial intelligence (AI) and semiconductors and the full-fledged rollout of policies to foster new-growth industries.
It said the ETF to be listed this time focuses on leading sectors and core growth stocks in the KOSDAQ market while using a strategy that eases the risk of concentration in specific names.
While existing KOSDAQ150 passive ETFs are structured to respond in a lagging, market-cap-weighted manner, the KOSDAQ active ETF to be listed by Mirae Asset Global Investments uses an active management strategy that flexibly adjusts weights according to growth potential and industry change.
Jeong Wontaek, head of Equity Investment Division 3 at Mirae Asset Global Investments, said, "There are already about three to four KOSDAQ active ETFs listed now, and they were big hits early on," adding, "But as they have grown larger, there will be structural limitations."
He added, "As the size gets bigger, the number of stocks that must be included also increases, and it becomes inevitable to hold top market-cap names in the KOSDAQ market," and explained, "Compared with existing KOSDAQ active ETFs, smaller active ETFs are likely to be able to hold many strong individual stocks in a more concentrated way."
Recently, the KOSDAQ market has seen investment demand rapidly expand around future growth industries such as AI, semiconductors, biotech, robots and space. In particular, as global AI investment has expanded lately, there has been an improving earnings trend among semiconductor materials, parts and equipment corporations. With policy funds and large initial public offerings (IPOs) in the pipeline, analysts say expectations for growth in new industries are rising.
Jeong said, "From this year through next year, a record capital expenditure (CAPEX) cycle could unfold, and corporations in materials, parts and equipment listed on Korea's KOSDAQ could be beneficiaries," adding, "Also, when a mega IPO occurs in the United States, the global growth of that industry is officially recognized, and related industry stocks listed on KOSDAQ are often re-rated."