KOSDAQ ETFs Post 28% Weekly Returns as Active Funds Outperform

KOSDAQ exchange-traded funds posted double-digit weekly returns as the KOSDAQ index rose 13.28% over the past week ending on the 5th, according to Korea Exchange data. Active ETFs outperformed passive index-tracking funds, with MIDAS KOSDAQ Active recording a 28.24% weekly return based on dividend reinvestment. The outperformance was driven by active funds' higher allocation to IT sectors, which exceeded 50% compared to around 30% for passive ETFs, as machinery, equipment, and electronics sectors surged over 16% during the period.

KOSDAQ Index Records 13.28% Weekly Gain

The KOSDAQ index rose 2.42% to 799.59 on the 5th, marking four consecutive trading days of gains. According to Korea Exchange, the index climbed 13.28% over the past week. All 18 KOSDAQ ETFs excluding leveraged and inverse products recorded double-digit weekly returns based on dividend reinvestment.

Active ETFs Outperform Passive Funds with IT Sector Allocation

Active ETFs managed by fund managers delivered higher returns than passive index-tracking ETFs. The top six performers were all actively managed funds: MIDAS KOSDAQ Active (28.24%), TIME KOSDAQ Active (27.07%), DS KOSDAQ Active (25.52%), KoAct KOSDAQ Active (24.67%), PLUS KOSDAQ150 Active (24.46%), and TIGER KOSDAQ Active (24.31%). The best-performing passive ETF, IBK KOSDAQ150, returned 22.68%, while other passive funds recorded returns in the 20-21% range.

The performance gap stemmed from portfolio composition differences. All six KOSDAQ active ETFs maintained IT sector allocations exceeding 50%, while passive ETFs held approximately 30% in IT. During the week, the machinery and equipment sector and electronics sector both rose over 16% on the KOSDAQ market.

MIDAS KOSDAQ Active Leads with 28.24% Weekly Return

MIDAS KOSDAQ Active achieved the highest weekly return at 28.24%. Jun-hyun Seo, manager at Midas Asset Management, attributed the performance to high weightings in robotics stocks that showed recent strength and biotech stocks that benefited from passive inflows into large-cap names during the market rebound. The fund's healthcare sector allocation stood at 21.06%, compared to approximately 10% for other KOSDAQ active ETFs. The pharmaceutical sector rose over 10% on the KOSDAQ market during the week.

The performance spread between the highest and lowest returning active ETFs was 3.93 percentage points.

Passive ETFs Show Higher Returns Over Longer Periods

Over one-month and three-month periods, passive ETFs outperformed active ETFs. KODEX KOSDAQ150 recorded a three-month return of -32.86%, while PLUS KOSDAQ150 Active returned -40.01%. The greater volatility in active ETFs reflected their more aggressive portfolio construction aimed at generating excess returns.

KODEX KOSDAQ150 Holds Largest Assets at 4.59 Trillion Won

KODEX KOSDAQ150 held the largest assets under management at 4.5948 trillion won as of the 4th. Other funds by AUM size were: TIGER KOSDAQ150 (1.2508 trillion won), KoAct KOSDAQ Active (423.2 billion won), RISE KOSDAQ150 (303.2 billion won), TIME KOSDAQ Active (236.7 billion won), and ACE KOSDAQ150 (139.7 billion won).

MIDAS KOSDAQ Active had the smallest AUM among KOSDAQ ETFs at 5.4 billion won. The fund launched on May 15 and has been listed for less than three months. Funds with AUM below 5 billion won one year after listing may be designated as administrative issues.

FAQ

What was the KOSDAQ index performance over the past week? The KOSDAQ index rose 13.28% over the past week ending on the 5th, closing at 799.59 after gaining 2.42% on that day. The index recorded four consecutive trading days of gains.

Why did active KOSDAQ ETFs outperform passive funds? Active KOSDAQ ETFs outperformed passive funds due to higher IT sector allocations exceeding 50% compared to approximately 30% for passive ETFs. During the week, machinery, equipment, and electronics sectors rose over 16% on the KOSDAQ market, benefiting the actively managed portfolios.

Which KOSDAQ ETF recorded the highest weekly return? MIDAS KOSDAQ Active recorded the highest weekly return at 28.24% based on dividend reinvestment. The fund's performance was attributed to high weightings in robotics stocks and a 21.06% healthcare sector allocation, compared to approximately 10% for other active funds.